Not Declaring Bitcoin Income

[jamids]

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?

If you are depositing unexplained FIAT in a bank account, the government might get involved, even if it is only a few thousand USD-worth per year.

If they see a suspicious activity in the account then they might investigate it further. As far as I know, banks focus more on accounts that has deposit of large transactions on a regular basis or a one time big time amount. If you only deposit a small amount then banks would not bother in your account. If someone wanted to get away with bitcoin income then he may want to separate his deposits in several accounts or just declare bitcoin income if you don't want to have problems with it.

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[Arkann]

Only if the government directly establishes income tax on profits from operations with crypto currency, payment of it is mandatory and entails a certain responsibility. If it is not, then this is a voluntary matter. This tax can and do not pay.

[qwertyup23]

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?

Well in my country's case, my friend interviewed the lawyer at our Central Bank and they said that bitcoin is treated as property, therefore not subject to legal tender. Applying your situation, it is indeed impossible to track down bitcoin transactions by applying its decentralized nature. The government also does not want to interfere yet involving some transactions because their are only a few number of people who know bitcoin. Currently, it helps the economy by making it liquid and by increasing the money supply on the market.

[Lampaster]

Only if the government directly establishes income tax on profits from operations with crypto currency, payment of it is mandatory and entails a certain responsibility. If it is not, then this is a voluntary matter. This tax can and do not pay.

To adopt a law on the taxation of cryptocurrency transactions, governments should recognize their currencies and open up their state accounts for the payment of taxes. Users do not always change their coins for Fiat. Once cryptocurrencies will be recognized as state residents can opt out of the national currency and it will be a nightmare for the government. So I think crypto-currencies will not be recognized for a long time.

[MiF]

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?

This is the one reason why nations should legalized bitcoin because they will gain bitcoin income tax in which a little bit frustrations to some bitcoin enthusiast because there profit will be deducted but i think this is fair because income thru fiat was tax collectable too. All tax imposed by the government are good as long as it was used for the welfare of their people that is why they should be honest in declaring bitcoin income but if it will just to be stolen thru corruption that is bad and I'm against it.

[Jovovich]

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?

This is the one reason why nations should legalized bitcoin because they will gain bitcoin income tax in which a little bit frustrations to some bitcoin enthusiast because there profit will be deducted but i think this is fair because income thru fiat was tax collectable too. All tax imposed by the government are good as long as it was used for the welfare of their people that is why they should be honest in declaring bitcoin income but if it will just to be stolen thru corruption that is bad and I'm against it.

I suppose it is not easy to regulate something that is virtual because mainly they cant track whoever own how much. It is still better to tax it if ever it is converted or let the government connect to entities that are using bitcoin in their services.

[Lancusters]

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?

This is the one reason why nations should legalized bitcoin because they will gain bitcoin income tax in which a little bit frustrations to some bitcoin enthusiast because there profit will be deducted but i think this is fair because income thru fiat was tax collectable too. All tax imposed by the government are good as long as it was used for the welfare of their people that is why they should be honest in declaring bitcoin income but if it will just to be stolen thru corruption that is bad and I'm against it.

You know at least one state which honestly spends collecting taxes. It's even funny to read you say that is very good if the government will not interfere in the Affairs of the bitcoin community. I want to tell you that the idea of creation of bitcoin was that people do not trust the government and want to create its own independent economy. if you like to pay taxes to the thieves refrain from bitcoin and use Fiat.

[SixOfFive]

Tax evasion is a serious issue that central authorities are facing with blockchain payment. Govt. still looking for the solution for this prob. You need not pay any taxes until you convert BTC to your country official currency. But what if you never convert it!!! Crypto-enthusiasts start making transaction in BTC that lead to no transaction proof hence no tax.

[btc-facebook]

If I'm paid the yearly tax , usually my government will ask where are the money come from !?
So If I'm not report them in this year, I will got penalty for next year ! There is another way by not convert bitcoin into fiat for 1 year or convert bitcoin and try to purchase gold / diamond

[darkangel11]

If I'm paid the yearly tax , usually my government will ask where are the money come from !?
So If I'm not report them in this year, I will got penalty for next year ! There is another way by not convert bitcoin into fiat for 1 year or convert bitcoin and try to purchase gold / diamond

You mentioned that 1 year rule. Are you by chance from Germany? I'm asking because it's probably the only country with a 1 year investment rule.
If you're spending your coins on small things it's still possible to avoid paying taxes, because there's no way to track in store transactions. It's possible (but hard) to ID you through the place an online purchase is being shipped to.
If you have a lot of money to convert and want to avoid taxation you can try selling it for cash (more risky) or moving for a while to one of the tah haven countries and getting a bank account there.

[darylalban]

I read somewhere that in the US, the SEC proposed a bill to monitor all activity of people's crypto portfolios

[SamsungBitcoin]

I think there is not need to disclose your income in bitcoin since it is decentralized currency it will not be subject on tax declaration.
Here in my country lots of people are now earning in bitcoin but no one state their source of income, how much income they generate annually because our government is not yet declaring it legal currency in our country but they do not banned bitcoin because they know that it would a big help to lessen the poverty in our country.

[zeze18]

yes I think if the government still doesn't declare bitcoin as a legal currency they certainly don't have the right to regulate taxation about bitcoin, and I think it is appropriate that they support bitcoin to continue to grow because the function of bitcoin is very good for the economy of users who experience better financial changes and able to reduce the unemployment rate in this country.

[franco123]

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?

I agree with you and I think this is not just for Bitcoin for some investment instruments as well. Example in real estate selling or renting, if it is not that big of a value, the transaction mostly is just personal and the government can not track it.

And the government is also less intersted in our country because only few are using and investing in Bitcoin for now. But sooner or later, as the Bitcoin continues to grow also in our countrt, the government might take some actions to also get a cut from the earning of Bitcoin.

[BitHodler]

I think there is not need to disclose your income in bitcoin since it is decentralized currency it will not be subject on tax declaration.
Here in my country lots of people are now earning in bitcoin but no one state their source of income, how much income they generate annually because our government is not yet declaring it legal currency in our country but they do not banned bitcoin because they know that it would a big help to lessen the poverty in our country.

Not sure where you come from, but in most well developed economies declaring your income, revenue, profits is a must  ~ people however aren't doing so, which is another subject.

And that in countries where Bitcoin isn't declared a legal currency or asset or whatever. In reality it doesn't matter what you buy or sell, paying tax is something basically everyone is subject to.

And how exactly are people in your country earning Bitcoin? Is it them joining signature campaigns, or are they actually working for their money? If we're really precise, then even signature campaign earnings could be taxed.

[leonair]

I think there is not need to disclose your income in bitcoin since it is decentralized currency it will not be subject on tax declaration.
Here in my country lots of people are now earning in bitcoin but no one state their source of income, how much income they generate annually because our government is not yet declaring it legal currency in our country but they do not banned bitcoin because they know that it would a big help to lessen the poverty in our country.

Not sure where you come from, but in most well developed economies declaring your income, revenue, profits is a must  ~ people however aren't doing so, which is another subject.

And that in countries where Bitcoin isn't declared a legal currency or asset or whatever. In reality it doesn't matter what you buy or sell, paying tax is something basically everyone is subject to.

And how exactly are people in your country earning Bitcoin? Is it them joining signature campaigns, or are they actually working for their money? If we're really precise, then even signature campaign earnings could be taxed.

They can't tax the earnings that you are getting on signature campaign until you converted it to your local currency, but as long as it is in crypto currency no matter on which coin you traded it they can't tax it. In the future tax schedules will be implemented for this currency.

[endlasuresh]

Our Govt is full strict against bank accounts, even they ordered to put identity for phone numbers. Still Bitcoin is new here however Government is monitoring it and might looking to put large taxation for customers.

You know our Government had requested PayPal not to keep funds in PayPal accounts and am thinking they do same thing with Bitcoin.

If more people uses, then every Government will arise for taxes, if not then they impose Ban on Bitcoin.

[kkent]

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?

If you are depositing unexplained FIAT in a bank account, the government might get involved, even if it is only a few thousand USD-worth per year.

If they see a suspicious activity in the account then they might investigate it further. As far as I know, banks focus more on accounts that has deposit of large transactions on a regular basis or a one time big time amount. If you only deposit a small amount then banks would not bother in your account. If someone wanted to get away with bitcoin income then he may want to separate his deposits in several accounts or just declare bitcoin income if you don't want to have problems with it.

But unfortunately only the government knows if they are going to investigate an account, there will always be some measure of risk unless you 100% comply with a country's declaration requirements.

[imsotiredofmoviereboots]

I think my country doesn't care anyway if any individual here in our country owns many btc. As today, we are free to earn as much as we could without declaring it. I believe that it would 2-3 years before our government will take legal actions because the increase of btc users here is very slow.

[cryptojac17]

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?

This is the one reason why nations should legalized bitcoin because they will gain bitcoin income tax in which a little bit frustrations to some bitcoin enthusiast because there profit will be deducted but i think this is fair because income thru fiat was tax collectable too. All tax imposed by the government are good as long as it was used for the welfare of their people that is why they should be honest in declaring bitcoin income but if it will just to be stolen thru corruption that is bad and I'm against it.

As of now my country has no question about the legality of BTC transaction seems like fiat that you can cash out money in any bank, but yes legalization of BTC is somehow one of the best option for us to declare our income to the government for taxes, because what I seen if we will just keep it this way that we just keep our income incognito to the government the time may come that they will question the legality of our income. Specially that we have a law that is called anti laundering law. And as good citizen we should share our in come to the government in the form of taxes for the welfare of the people who needed it.