Not Declaring Bitcoin Income

[newwest]

In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.

They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.

[ValerKat]

I find it too risky not to declare it. If you spend a lot of money with cryptos and link your name to a bitcoin address, you can also draw conclusions
about your income and then it is not far until the state comes to you. Bitcoin is not anonymous as it is mistakenly assumed.

Every country has its own law about declared assets and as far as I know in my country there is no crypto in that list.
Crypto is anonymous until you decide to change it on fiat money and to output on your credit card, or when you go through verification in exchange market or somewhere (than you also identify yourself).

[jrrsparkles]

In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.

They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.

There is no tax until we keep using bitcoin as bitcoin but still it is not possible yet so we need to convert our bitcoin into fiat so bank is essential so our earning will be recorded so we must need to pay taxes according to our income.

[brylle34]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

Government can track your transaction because we know that it is traceable on blockchain, if you owns that wallet and that wallet has your own name attached to it. but their are wallets that you can withraw and atm's to change bitcoin to fiat money. Governments in your country are sure using bitcoin to earn a lot for themselves, it has a high chance before you joined bitcoin, they know bitcoin already and they use it for a long time, Governments will sure not slip every opportunity to make income not for their country but for their own profit.

[bhadz]

There is no tax until we keep using bitcoin as bitcoin but still it is not possible yet so we need to convert our bitcoin into fiat so bank is essential so our earning will be recorded so we must need to pay taxes according to our income.

There's no need for the bank to get involved with our bitcoin income. Paying tax is essential whether bitcoin isn't recognized then the only thing that we must do for declaring our tax is to volunteer ourselves going to the tax bureau and declare your bitcoin income.

They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.

They can and they can't. If you use an exchange that is sending payment through banks then for sure you are obliged to pay the tax because it is recorded to the bank's system and audit.

[marielbeckham]

Luckily, any government is not capable of having a full control when it goes about BTC.

[BTCeminjas]

Just like here our place luckily my government is quite enough on bitcoin now they did not implement any laws regarding bitcoin and all cryptocurrencies here. Besides they are recognized bitcoin as a kind of currency here and that case they are warned us that to be careful and avoid of being Ponzi scheme with this currency because they have nothing to do on this.

[Hamphser]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

Government can track your transaction because we know that it is traceable on blockchain, if you owns that wallet and that wallet has your own name attached to it. but their are wallets that you can withraw and atm's to change bitcoin to fiat money. Governments in your country are sure using bitcoin to earn a lot for themselves, it has a high chance before you joined bitcoin, they know bitcoin already and they use it for a long time, Governments will sure not slip every opportunity to make income not for their country but for their own profit.

What would you expect on the things that government do?They wont really make any chances for someone to skip to their obligations or which they do saw that they can able to make money too. We can say blockchain is on public and can be traced up but this would still be a hard thing and this is why most governments doesn't really like bitcoin after all.They do know that tracing such thing would be difficult.

[JC btc]

What would you expect on the things that government do?They wont really make any chances for someone to skip to their obligations or which they do saw that they can able to make money too. We can say blockchain is on public and can be traced up but this would still be a hard thing and this is why most governments doesn't really like bitcoin after all.They do know that tracing such thing would be difficult.

Yes that is right, so it is better to follow the rules rather than making a legal action with us for not paying the right tax especially when we are earning here, glad that here in Philippines we are not obliged yet to do so, if not then we also need to comply.

[biboy]

Unless you convert your Bitcoin into fiat and transfer it to your bank. Government isn't involved at all. You are taxed on the gain you made that are calculated through fiat amount.

That is right, if your money was already in a bank then we don't  have a choice but the bank will automatically deduct tax on it, so for me just think twice what you will gonna do with your income.

[Hannahanto]

Well i think because there are no employees or other terms related to it. Income also would mean it comes from the government and you have certain id to track your employment. Our bank stated that they support btc as a means of transaction but i not as payment so i guess those are different. I tried stating btc as my source of income but the embassy did not accept so i have to show them my wallet and many sites to open just to give them some clarifications.

It purely depends upon your government and bank. If you convert the bitcoin to local fiat and that amount would be transfer to your bank, if the amount is less there is no issues, at the same time the amount is high you have to answer. The bank should watch all of your transactions if it exceeds beyond the limit.

[Edraket31]

Well i think because there are no employees or other terms related to it. Income also would mean it comes from the government and you have certain id to track your employment. Our bank stated that they support btc as a means of transaction but i not as payment so i guess those are different. I tried stating btc as my source of income but the embassy did not accept so i have to show them my wallet and many sites to open just to give them some clarifications.

It purely depends upon your government and bank. If you convert the bitcoin to local fiat and that amount would be transfer to your bank, if the amount is less there is no issues, at the same time the amount is high you have to answer. The bank should watch all of your transactions if it exceeds beyond the limit.

Yes I am not declaring it, what for it is not required  in our country, but if my country will push me to declare all the bitcoin income I am earning then I will follow them with all my heart, I will not disobey the rules, but since not that we are not yet required then we are still enjoying what we have right now.

[marielbeckham]

Yes, surely. They could track your transactions relatively easily, but nobody cares about this now too much.

[Netnox]

In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.

They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.

If you are using an offshore bank account, then the chances are quite low (unless the amount is very big). There are protocols in place to get information from foreign banks and it is quite complicated. The authorities are not going to use this route, unless the amount is quite large.

[futureofeth]

In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.

They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.

If you are using an offshore bank account, then the chances are quite low (unless the amount is very big). There are protocols in place to get information from foreign banks and it is quite complicated. The authorities are not going to use this route, unless the amount is quite large.

Now every bank is tracing the bitcoin transactions because many people are exchanging their bitcoins in a local exchange into their fiat currency. It is very easy for banks to easily identify those transactions.

[Kevinbind]

After upcoming worldwide regulations people will HAVE to declare it. Sad but true

[gogrowglow]

I will not declare my income from BITCOIN in my ITR (Income Tax Return) voluntarily  because here in my country government is not yet requiring it.  They have not yet find a way to taxed cryptocurrency and I hope that they will not for a very long time.  I want to enjoy the fruit of my labor from BITCOIN. 

[marcuslong]

There is no tax until we keep using bitcoin as bitcoin but still it is not possible yet so we need to convert our bitcoin into fiat so bank is essential so our earning will be recorded so we must need to pay taxes according to our income.

There's no need for the bank to get involved with our bitcoin income. Paying tax is essential whether bitcoin isn't recognized then the only thing that we must do for declaring our tax is to volunteer ourselves going to the tax bureau and declare your bitcoin income.

They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.

They can and they can't. If you use an exchange that is sending payment through banks then for sure you are obliged to pay the tax because it is recorded to the bank's system and audit.

How come the governement of my country in asia where I lived will scrutinize that part, since there were many type of money trasfers now offered in different countries right now. Definitely the private sectors whom doing the business of money transfers were really required to pay their taxes, but in our side as a trader of the local exchange site we already paid charges while doing the transactions with them. My advice for this matter, please avoid sending huge amounts to bank directly, just do the transactions separately or the other types of money transfers can do.

[malbterxic]

In my country bitcoin is not recognized at the state level, so I do not see the point of showing the income from this activity.
If we consider the situation with the legalization bitcoin, then I still do not see the point of showing income, what for ?
The more he has such volatility, at which today's profit, tomorrow will become emptiness.

[ene1980]

After upcoming worldwide regulations people will HAVE to declare it. Sad but true

Why would anyone be forced to disclose their assets and if so why would they reveal everything and if not how on earth are they going to know about it.

Are the bitcoin earnings taxable only when you convert them to "real" currency or is the tax applicable even if you dont convert ?

You need to pay your tax when ever you convert to fiat currency, there is no provision to pay your taxes while you are holding the coins and you really do not need to disclose your amount too.

If we consider the situation with the legalization bitcoin, then I still do not see the point of showing income, what for ?

If you have made money with bitcoin and you have converted it to fiat currency you have to pay your taxes for the income you have made.