Should governments allow people to pay their taxes in Bitcoin BTC?

[pooya87]

If it was an option in your country, would you pay your taxes with Bitcoin?

Or would that not make any sense to you at all, especially if you hold BTC as an asset whose value you hope to see increasing over time...?

I personally pay my taxes with EUR and will probably continue to do so even if I can pay with BTC

at this point your question is like saying would you pay your taxes with gold!
bitcoin is more like an investment because of how its price is changing up all the time. and people when seeing this become reluctant to spend their valuable investment.
we need stability first, then regulation and then we think about payment.

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[Kakmakr]

I already pay tax on the coins I convert to fiat via my exchange, because it is linked to my bank account. So they issue a tax certificate and they are linked to the IRS. You pay capital gains and also VAT on all your purchases, so I cannot see what else you have to pay on top of that?

The regulated exchanges have to adhere to KYC and AML regulations, so everything is accessible to the IRS.

[Doms]

Most governments don't even have clear policies and regulations regarding bitcoin and crypto currencies in general, how can we expect them to accept it as tax payment. And with the price of bitcoin fluctuating from time to time, the government would really have a hard time dealing with it. They have their own targets that they must hit and they can't depend on bitcoin in that regard.

[Lorilikes]

No!
I don't want to pay tax, as I want the destruction of all countries. About 40 million people in Europe are on benefits, if there were no governments to pay them, they would all die and Europe would be a far nicer place. Only the best shall survive. Countries are corrupting natural order, so I don't want to pay tax to destroy all countries and restore natural order. BTC will help towards that goal.

Bitcoin rate may go up and may go down what happend if it goes high? and the taxes price changed to the currently rate of the bitcoin?
I voted NO. 

If government gives tax payment option through bitcoin, Why do we resist?

Tax would be beneficial for us if it was set in state laws. Which makes bitcoin up and down is a market, not a tax. We always hope that bitcoin is regulated, but refused taxed, it is not justified. Bitcoin will forever be an underground movement if all users reject government tax (live like Robin Hood).

I was going to go with my first reaction which was " CHILL out, maniac."  But the Robin Hood reply was much more eloquent in delivery.  That's all .

[wahb]

Most governments don't even have clear policies and regulations regarding bitcoin and crypto currencies in general, how can we expect them to accept it as tax payment. And with the price of bitcoin fluctuating from time to time, the government would really have a hard time dealing with it. They have their own targets that they must hit and they can't depend on bitcoin in that regard.

in fact when the government are not ready to accept bitcoin as legal currency then how can they allow and can accept tax in bitcoin. i think thirst they need to consider bitcoin as legal currency and after that they can allow people that either they want to pay their tax in bitcoin or in fiat. but currently i do not think that government will be ready to accept bitcoin as legal currency but after some time they must be thinking about that.

[Text]

I think governments will not regulate allowing people to pay their taxes in bitcoin for now because they are not so fully aware on this,  they are too busy on different situations. But if it will an option here in our country I would likely to pay my taxes with BTC.

[rinhunter]

NO.
in my country bitcoin is not legal, the government does not recognize bitcoin as legal payment.
but if will happen in my country i'm still pay taxes with Fiat Currency. Bitcoin just for the alternative online payment for me.

[Amph]

I already pay tax on the coins I convert to fiat via my exchange, because it is linked to my bank account. So they issue a tax certificate and they are linked to the IRS. You pay capital gains and also VAT on all your purchases, so I cannot see what else you have to pay on top of that?

The regulated exchanges have to adhere to KYC and AML regulations, so everything is accessible to the IRS.

OP is not talking about paying simple tax, he is talking about paying tax with bitcoin, unless you use external third party service you can't currently do it directly in any country

i theory if they are really serious about regulating bitcoin, they should allow us to pay tax with bitcoin itself, especially if they are going to tax bitcoin...

[n691309]

If it was an option in your country, would you pay your taxes with Bitcoin?

Or would that not make any sense to you at all, especially if you hold BTC as an asset whose value you hope to see increasing over time...?

I personally pay my taxes with EUR and will probably continue to do so even if I can pay with BTC

I think you can pay your taxes with bitcoin through a bitcoin debit card only if you pay already through your local credit card. But If I was asked I wouldn't spend the bitcoins to pay taxes because the value of bitcoin changes and we hope that it will be increased, I would continue paying in fiat instead of bitcoin.

[nara1892]

probably it will be easier to pay taxes with bitcoin, let's say we don't need to go to the office, but we can send it from house. however, bitcoin has better function than just as a payment method. and I think we all know it, that bitcoin is a very good investment.

[deisik]

If it was an option in your country, would you pay your taxes with Bitcoin?

Or would that not make any sense to you at all, especially if you hold BTC as an asset whose value you hope to see increasing over time...?

I personally pay my taxes with EUR and will probably continue to do so even if I can pay with BTC

I guess this largely depends on what you are using Bitcoin for

If you are primarily using it as a means of payment (e.g. for buying goods and paying for services), then there shouldn't be any issue if you choose to pay taxes with it (just like you pay for anything else with Bitcoin). On the other hand, if you mainly use Bitcoin as a financial asset (read for speculation) or even as a store of value, then paying taxes with it doesn't make much sense since that would basically mean wasting valuable resources. Personally, I wouldn't pay taxes with Bitcoin, in fact, I would rather prefer to keep my taxes low

[erickkyut]

Government should not mandate every bitcoin users to pay taxes because one of the reasons why it was created is to be use with convenience. If government will tax us, they need to regulate first a law about it and the different countries involve in bitcoin needs to agree. Many people will protest about this idea!

[South Park]

It is not necessary to pay taxes via bitcoin. Our bitcoin is convertible into fiat. Few countries have outlawed Bitcoin. Because bitcoins are being treated as assets, if you use bitcoins for simple transactions such as buying groceries at a supermarket you will incur a capital gains tax.

It is better to just use our coins directly when we can than to try to convert it to fiat first since if you convert it to fiat and you profit from it, you will have to probably pay taxes on the profit and you will pay fees in the conversion, it is better to spend bitcoin directly that way you don't pay fees and you don't have to pay taxes since you still own the same amount of bitcoin.

[Maskedman]

Yes, they should able people to do it. This would legitimate a bit more Bitcoin and that would prevent us to be taxed when declaring it as a profit and then use it to pay our taxes.

[Daniel91]

Such idea is not realistic for now.
First, bitcoin is not recognized yet as real currency or financial assets in the most countries in the world.
So, for example, I can't even report earning in bitcoin to the tax office.
Only when I exchange my bitcoin funds to my local currency, I can report it to my local tax office.
In my country, during tourist season, for example, merchants can accept also foreign currencies but still, on the end of day, they have to exchange such funds to local currency.
So, even in such case, there is no way to report tax in foreign currencies.
In bitcoin? I don't see how is possible.

[South Park]

Government should not mandate every bitcoin users to pay taxes because one of the reasons why it was created is to be use with convenience. If government will tax us, they need to regulate first a law about it and the different countries involve in bitcoin needs to agree. Many people will protest about this idea!

Governments can do whatever they fell like and pass any law they want, the problem is how to enforce the law, and that is where bitcoin seems to be very strong , the governments don't seem to have the power to pass whatever they want into the code and even if they did we could always change to another crypto.

[cryptothinker]

I think that any measure that makes the government have less control over people's decisions is a good thing, but governments will probably not do so because it goes against the interests of those in power.

[asdalani]

The Government shouldn't be allowed to tax any Digital Currency that isn't hosted on the Military Server's. Bitcoin could be on a mesh-net or even something beyond that and the still exist while transactions are being sent to anyone in any type of server so in reality if we go a little bit further the Government hasn't have a warrant to tax anything Foreign.

The one world Government is the only solution to them taxing Bitcoin if they do it legally. The Government are the real crooks playing the game.

[machinek20]

No I will never pay my tax using bitcoin, i dont want to let the government know that i own bitcoin, and i prefer to keep bitcoin as investment because the price is keep on rising while fiat value is keep on decreasing, so it  makes more sense to pay using fiat

[asdalani]

No I will never pay my tax using bitcoin, i dont want to let the government know that i own bitcoin, and i prefer to keep bitcoin as investment because the price is keep on rising while fiat value is keep on decreasing, so it  makes more sense to pay using fiat

Yep, there is many methods of cashing out Bitcoins without the Government knowing. Once you have that figured then you should be allowed to use Bitcoin without the Governments buttery hands all up on your cash.