Canadian authorities: they don't like bitcoin but they want to tax it

[virtualmaster]

Canadian authorities: they don't like bitcoin but they want to tax it
http://blogs.marketwatch.com/thetell/2013/04/29/canada-to-tax-bitcoin-transactions/

[franky1]

nothing new..

what proposed is if you are sending money to friends and family like in birthday cards or donations or purchasing things at a garage sale/privately thats not taxable
same with bitcoin

but if you go to a shop, and there is sales tax involved, then yea canada wants to ensure it gets it tax revenue.

... so why do i say nothing has changed.

well if a shop has a product which has sales tax on it. the shop simply values the product with sales tax included and converts that into a bitcoin price..

once the shop sells the coins to get their dollar value, they pay the sales tax..

nothing new at all.

until wholesalers and manufacturers accept bitcoin, whereby shops would prefer to not ever again touch the dollar by purchasing stock purely in bitcoin and then reselling the stock purely in bitcoin...... thats when shops have to become creative.

but right now shops still have to cash out to FIAT to pay wages and repurchase stock.. so nothing has changed. the funny part is when they talk about the investment side.

imagine you buy $10,000 worth of bitcoins. then move it about into different wallet addresses. and then shout.. I LOST ALL MY COINS.

great you can now have it as a income tax loss and pay less tax against your other income.....

meanwhile you can easily keep your coins in cold store and only use them when you go on vacation to Jamaica and meet up with a local Jamaican you found on localbitcoins.com.

(i don't endorse such tax evasive practices nor endorse the only vacation spot should be jamaica)

[nebulus]

Not a big deal unless they want to collect in BTC...

[bit777]

I don't see a way that they could control it in order to tax it. It's like taxing air.

[franky1]

i can imagine how the tax office would have a nightmare and actually lose revenue by legitimising bitcoin investments

[cypherdoc]

i can imagine how the tax office would have a nightmare and actually lose revenue by legitimising bitcoin investments

by taxing it didn't they just legitimize it?

[tuliplover]

i can imagine how the tax office would have a nightmare and actually lose revenue by legitimising bitcoin investments

by taxing it didn't they just legitimize it?

Something can be illegal and taxed at the same time, funny but true.

[franky1]

i can imagine how the tax office would have a nightmare and actually lose revenue by legitimising bitcoin investments

by taxing it didn't they just legitimize it?

Something can be illegal and taxed at the same time, funny but true.

true

legitimise does not mean legalised. i meant that by taxing it, makes it recognised officially.