Bitcoin tax in Canada!

[plutuswd]

I am a Canadian Citizen, and I say that this is Compleate and utter Bullshit.
Taxing a digital good? Come Tax my fucking videogame items while your trying at it, if i "suddenly" get 10k into my bank account, ITS NONE OF YOUR FUCKING BUSINESS WHERE I GOT THAT MONEY FROM, and if you Fucking Ask Where It Came From, im switching banks
Fuck You Revenue Canada
Bitcoins are already SELF TAXED by the people who use bitcoins and the system itself!

he he he.

Free range slaves; they like to think they are free. We let them speak all they want, but when it comes time to pay up, the GoC has ways to enforce compliance.

[Kaiji]

I wish they would tax only considerable amounts of profits made from bitcoins such as any amount above $10000. They tax everything and everybody there is no way they will ignore bitcoiners. Better to pay now than have all the hassle and legal problems later on.
Maybe someone with legal know how can find some loop hole so we can avoid paying.

[agentbluescreen]

What if CRA got smart and started to troll the block chain and applied a little network analysis to it? Forensic accountants are accustomed to ferreting out tax cheats and are used to their schemes of sending money from one place to the next.

All the steel and concrete in the cores of tall skyscrapers would all be "melting" at once from wayward flying-pork barbecue accidents.

[nobbynobbynoob]

Maybe someone with legal know how can find some loop hole so we can avoid paying.

If you want to sell BTC and dump serious amounts of fiat into your Canadian bank account, I don't think there is any loophole. You gotta pay the tax if it's due.

If you don't convert BTC to fiat, or you do it only OTC... your tax liability might be a bit lower. But not zero if legitimate businesses where you spend your BTC pass on GST costs to you. It's difficult to avoid all taxes!

[Kaiji]

Maybe someone with legal know how can find some loop hole so we can avoid paying.

If you want to sell BTC and dump serious amounts of fiat into your Canadian bank account, I don't think there is any loophole. You gotta pay the tax if it's due.

If you don't convert BTC to fiat, or you do it only OTC... your tax liability might be a bit lower. But not zero if legitimate businesses where you spend your BTC pass on GST costs to you. It's difficult to avoid all taxes!

What does OTC mean? So basically they can tax you only if you convert bitcoins to fiat currency.

[nobbynobbynoob]

What does OTC mean?

Over The Counter, as in in person face to face.

So basically they can tax you only if you convert bitcoins to fiat currency.

Income or capital-gains tax, yes. But legit businesses accepting payments in BTC normally do their accounting in fiat and pay their GST or whatever as before. Sure, you could do private business "under the table" tax free (illegal for businesses required to register for GST) with bitcoin, but this is done thousandsfold more often with ca$h already, so bitcoin really isn't a tax-evasion mechanism per se. It does offer one big advantage of portability, though. You don't have to declare bitcoin to customs (and with the brainwallet option, it would be unenforceable even if you did!), something that makes it a better "hidden" store of value than even overseas numbered investment accounts.

Disclaimer: IANAL and there is no hint of formal tax or legal advice anywhere in this post.

[Rygon]

FYI, in the US, the IRS rules are more or less the same. I asked my tax guy (surprisingly, I wasn't the first), and he said the IRS would definitely enforce taxes on fiat gains from buying and selling BTC. Additionally, trading BTC for goods (no fiat in the mix), would be treated as a barter exchange, and any gains on the fiat value of the goods would be considered taxable. For example, if someone buys 10 BTC at $5 apiece ($50 total), then gives those BTC to an online retailer in exchange for a computer that normally sells for $1000, the person who bought/sold BTC would have a taxable gain of $950.

For obvious reasons, almost no one reports gains from bartering. However, if the IRS became aware of the transaction and wanted to spend the resources to audit and prosecute, they would most likely be successful. It doesn't matter whether you agree that it's right/wrong, or even the proper interpretation of the law (the IRS rules are not always consistent with the law). Looking at other similar situations, the IRS would win in the courtroom, which is really the only thing that matters.

[TomUnderSea]

I don't know what the problem is.

I always pay every tax that I owe promptly and without complaint.

To say anything else would give the IRS probable cause to investigate me, right?

[firefop]

I don't know what the problem is.

I always pay every tax that I owe promptly and without complaint.

To say anything else would give the IRS probable cause to investigate me, right?

LoL - exactly the reason to use offshore financial institutions to handle some portion of your btc <> fiat transactions. Anyone know the legallity of income earned outside of the US? My understanding of this issue says that unless you're transporting fiat into the country it wouldn't fall under income tax - but that good transported in may require you to pay tariffs on them.

[elessdai]

Seems like a good news for black market and illegal stuff.

A guy get 50000$ from a drug deal, he just have to claim bitcoin transfer, he pay tax and everything is legal.

I really don't know how is this going to work ...

[Fiyasko]

Seems like a good news for black market and illegal stuff.

A guy get 50000$ from a drug deal, he just have to claim bitcoin transfer, he pay tax and everything is legal.

I really don't know how is this going to work ...

That right there, Is fucking hillarious you could turn your dirty money clean by running it through the bank, LAWL

[Evo]

They'd most likely only be able to tax businesses bitcoins.

[arfeniel]

Seriously, what is so hard about paying taxes. Just do it!

If you want to pay less taxes, you need to elect politicians who care more about the people and the future of the country that their reelection. And also, cut in services.

[Este Nuno]

Why would you expect anything else?

[cbeast]

It won't be long before property tax assessors are auditing your mmo.

[canada]

hello. please send all your taxes to this bitcoin address: 1NZjvHEmkHSUtStozJGvoRiGQG175SZMYk

see? that's not so hard, now is it?

[Este Nuno]

hello. please send all your taxes to this bitcoin address: 1NZjvHEmkHSUtStozJGvoRiGQG175SZMYk

see? that's not so hard, now is it. thank you for being a good little citizen.

And what if I am due a refund? Will you pay me in bitcoin?

[canada]

hello. please send all your taxes to this bitcoin address: 1NZjvHEmkHSUtStozJGvoRiGQG175SZMYk

see? that's not so hard, now is it. thank you for being a good little citizen.

And what if I am due a refund? Will you pay me in bitcoin?

nope, paying out in deflating fiat currency. cause that's how i roll