How to TAX Bitcoin. An easy way !

[GoogleBit]

In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.

So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.

So the actual way of getting the real numbers is quite bad.

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.

Sure it is still possible to hide Bitcoins, but then it is illegal.


...or did I miss something?

[matuson]

But that your government recognizes bitcoin as a currency? I doubt it. Your income in bitcoins according to the law is not revenue. If you buy goods with bitcoin it does not fall under the tax base. If you exchange them for your currency, then taxes will have to pay.

[hase0278]

You can tax bitcoin that way but government could not tax all of one's bitcoin because one person can only give 1 of his/her address and keep most of his/her bitcoin on other addresses that he will not mention to the government. That way he/she can evade tax in bitcoin. Even if it is illegal, how would they know if someone is evading bitcoin tax? So the one who will do it has a high probability of not being punished by doing this.

[hatshepsut93]

In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.

So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.

So the actual way of getting the real numbers is quite bad.

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.

Sure it is still possible to hide Bitcoins, but then it is illegal.


...or did I miss something?

People who will want to evade taxes will just not report all their addresses. They will keep coins on separate wallets, use multiple accounts on exchanges and other services, run their coins through mixers, exchange Bitcoins for some anonymous alts like Monero, Zcash and Dash, and then convert them back to BTC. If you are not dumb, you can hide your coins well enough. But of course noobs will be getting caught, like they are getting caught today on this forum, when they have multiple accounts and try to join signature campaigns, and when managers check their addresses, they get proof that multiple accounts belong to a single person.

[GoogleBit]

...ok guys.

In my country we can pay the power bill and buy tickets for railway, we can even pay some taxes with btc.
What I'm talking about, if every country is treating btc as a currency, then, it is not different to cash to tax it.
It makes it even much, much easyer. Think twice before you post...

but thanks for replay ;-)

[talkbitcoin]

i don't know why people are so weird about taxes when it comes to bitcoin. i get that none of us are happy about paying taxes but why is it always different when it comes to bitcoin!
people pay taxes on literary anything you can think of with no complains but when it comes to paying taxes on owning bitcoin, using bitcoin, trading, etc they all start protesting vigorously!

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

it is the same as asking you to report all the properties you own!

[@prashant]

i don't know why people are so weird about taxes when it comes to bitcoin. i get that none of us are happy about paying taxes but why is it always different when it comes to bitcoin!
people pay taxes on literary anything you can think of with no complains but when it comes to paying taxes on owning bitcoin, using bitcoin, trading, etc they all start protesting vigorously!

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

it is the same as asking you to report all the properties you own!

People talk about bitcoin tax as it is anonymous and nobody has any record to match its owner but i do think bitcoin is no different from forex trading or share trading that you do ,in both cases you invest to gain profit then deposit them in bank .it is wrong when you hold a good amount of money with yourself without any record.simply put money in bank and go with ease.

[machinek20]

Hiding cash under your bed or gold bar also tax evasion which is illegal, if government really regulate and taxed bitcoin it is better just report and pay the tax, it is possible to hide bitcoin but when you want to change it to fiat or spend it the government will know about it

[LeGaulois]

In my country we do pay taxs with cryptocurrencies, if you made profits from buying and selling. If you just hold then it's ok. We don't need to give adress to show proofs i guess it is based on trust. But i can tell you some exchanges are highly watched so if you're receiving large amounts be sure they won't need your report.

[Zadicar]

In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.

So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.

So the actual way of getting the real numbers is quite bad.

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.

Sure it is still possible to hide Bitcoins, but then it is illegal.


...or did I miss something?

Basing on the situation you do example is quiet complicated but possible. If government would tend to plan that thing it will consume time and somehow useless since people can anytime hide their assets or money in other address because they cant force you if you have another address even they would try to seek out i can say it would be useless.Imposing tax is possible only on the services you do use.

[arpon11]

In my opinion bitcoin should not be seen as property therefore it transactions should be exempted from tax. I see bitcoin as money and not gold or commodity or property but a medium of exchange for good and services.

[que91]

In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.

So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.

So the actual way of getting the real numbers is quite bad.

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.

Sure it is still possible to hide Bitcoins, but then it is illegal.


...or did I miss something?

Remember Bitcoin can saving in hard wallet and the government can't check it, if want tax Bitcoin, I think we have some ways:
1. Create a World Bank for storage Bitcoin all user on the world and all user obligatory deposit to this bank, it useful for the government check balance Bitcoin anyone
2. Create tax fee any transaction in Blockchain Bitcoin, but only need government have huge hardware for mining or a way look like as PoS

[Fortify]

You did not miss anything, that is how the tax system works and always has worked, it relies on trust. The tax office will trust you, along with random audits, but most governments now can only tax on your fiat money. When you cash it out, they will know and tax you on that income. Governments around the world will eventually catch up to the intricacies of bitcoin but it's inherent nature makes it easy to be anonymous.

[ASHLIUSZ]

Taxation of bitcoin is in the hands of the government. Most of the time government don't show much importance on these issues and recently found that Israel making plans to levy taxes on the transaction taking place and this is followed to add bitcoin to the taxable asset.

[Yakamoto]

In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.

So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.

So the actual way of getting the real numbers is quite bad.

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.

Sure it is still possible to hide Bitcoins, but then it is illegal.


...or did I miss something?

Yeah, you missed a lot to be honest.

I now own a BTC address with $5 in it and other addresses I may or may not have had access to now belong to someone from Aruba. I don't own them, someone far away does. It's weird why they keep paying for my stuff. Either way, that's not my address. I don't own it, can't be taxed because they're not in the same country and I'm not the owner of the address.

Damn shame how that simply doesn't work, huh?

[Harlot]

Giving away your Bitcoin Wallet Address won't solve the problem of Taxation. You know why? Because even if they can monitor it incoming and outgoing transactions they won't know which one is categorized as earnings or just someone remitting you money (which is not counted as income) this can be a major problem for the citizen as he/she might be taxed wrong, I don't know a clear solution for this even giving a dedicated address for your business will not solve the issue.

[chaser15]

...or did I miss something?

Sounds hassle to me. Let the tax be shouldered by the bitcoin exchanges that is operating per country. Since we shouldered fees in every type of services that bitcoin exchanges is giving us, we are being tax now directly via using them. As long as the fees is reasonable then it's fine to me since no doubt that a legit bitcoin exchange should be operating under legal terms of the said country. We have the advantages here on the other hand.

Registering every bitcoin users in the said country is a shit and I doubt government will implement that way. Waste of budget.

[swogerino]

You can hide bitcoin but it would be better to declare the TAX for it if your country recognize it as a legal currency and be a good citizen for your country. If your country do not recognize it as a currency you are not forced to pay TAX for it however when you exchange it to receive cash you must pay taxes.

[Slark]

Sure it is still possible to hide Bitcoins, but then it is illegal.

Do you think that everyone who owns Bitcoin suddenly will go and report every single address they own?
Don't you think that tax in some countries is already ridiculously high, we are giving out more than 50% of our earnings in tax!
Bitcoin should remain tax-less for some time, just to boost and push adoption of this technology, then in the future, we can think of some advanced way to tax BTC.

[pixie85]

You can hide bitcoin but it would be better to declare the TAX for it if your country recognize it as a legal currency and be a good citizen for your country. If your country do not recognize it as a currency you are not forced to pay TAX for it however when you exchange it to receive cash you must pay taxes.

That's correct. There's no way to trace transactions or to make people give up their addresses. Addresses are not connected to identities which makes it impossible for the government to prove anything. If they wanted to tax you they'd have to prove beyond reasonable doubt that you own these addresses and this is impossible, unless they can find you posting a signed message on social media or something.