Not Declaring Bitcoin Income

[warrior333]

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.

Any law on money laundering is applicable to Fiat. Bitcoin is not recognized as a government currency and therefore can not be income. If you keep your bitcoins there are no problems with the law you will not. If you cashed them through the exchange for dollars is the income earned outside of your state and also should not be taxed. But best of all if it is possible to spend bitcoins in the online store.

[Theb]

Well technically they are not violating any laws as the gains you will receive from buying and selling of cryptocurrency are not called income but they are called capital gains, the tricky part here is that not all capital gains tax rates are the same your country might have different rates for stocks, real estate, and for sure Bitcoin does not have anything as of yet but they will most likely match it to the tax rates of the stocks.

[Gabb]

My country is far behind in matters related to cryptocurrencies. There is no law that regulates the purchase or sale, therefore it is difficult to declare bitcoin incomes here, so I do not think there is a crime to pursue, especially when my income derived from the cryptos are very small.

[SUDARMONO]

I think the state will not be able to track our individual interest transactions, we can only track wallet transactions and can not track the owners of the accounts, the state can only get taxes when we exchange bitcoins with fiat money, and the use of bitcoin ATM

[Flor1982]

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 the government can now track our bitcoin earnings as long as we use the exchange service because our every transaction is now recorded. Here in my country our local exchange will required as an goverment issue ID for our true identifications so that every time we convert our bitcoin to fiat there is a record. I think we dont need to declare our bitcoin income unless if the government required as to do so as a policy but if not they are already earning to our every local exchange transactions therefore no need to declare bitcoin income because we are already paying bitcoin tax thru exchanger service.

[Klausi]

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?

You should declared and pay the bitcoin income tax if you are required to do so because if the bitcoin is legal in your country you need to abide the law and your government policy to avoid facing the consequences. But if your government is not strict of your personal bitcoin income maybe i think you are already paying the tax thru your bitcoin exchange services fees in which the part of the amount of the fees is your tax to the government therefore no need to declare an bitcoin income because they will just depend to your bitcoin amount to be change to fiat.

[Aamir1]

In my country, you can't even find a place where "Bitcoin" is written on something, so i don't think if the government would need to be concerned with anything related to bitcoin right now. Maybe if in future bitcoin overtakes the country and is found everywhere then maybe the government will start tracking the incomes of people coming out of it, but that doesn't seem to be happening very soon. So i don't really declare my bitcoin income and i don't even need to do that.

[WhiteOutMashups]

In my country, you can't even find a place where "Bitcoin" is written on something, so i don't think if the government would need to be concerned with anything related to bitcoin right now. Maybe if in future bitcoin overtakes the country and is found everywhere then maybe the government will start tracking the incomes of people coming out of it, but that doesn't seem to be happening very soon. So i don't really declare my bitcoin income and i don't even need to do that.

yeah thats the reason you have to be careful with your taxes anway, especially concerning cryptocurrencies

[craigpo]

But my question is: HOW are they going to monitor blockchain if they plan to??
Seems like an impossible task, plus they would need a lot of talent.

[Irvinn]

Each state will establish its own rules for the circulation of the crypto currency and its tax rates and its object. It is up to each individual to decide whether to pay such taxes or not, since it is really difficult to track them. Apparently, the taxable income will differentiate depending on the size of the profit and some minimal amount of operations with the crypto currency will not be taxed.

[squatter]

But my question is: HOW are they going to monitor blockchain if they plan to??
Seems like an impossible task, plus they would need a lot of talent.

There are several blockchain analysis companies, e.g. Chainalysis and Elliptic. This sector is growing quite quickly, and it sounds like they are getting pretty sophisticated. Blockchain and taint analysis seems arduous to us, but Bitcoin is not particularly private, and with the right tools it should not be nearly as difficult as some people think.

These companies are already working closely with law enforcement in the area of tracking darknet market activity. In the future, I think it's possible that they could coordinate with tax authorities too. In the short term, though, governments already have their hands full trying to get a handle on exchanges. It will be a while before we get to that point.

[Lampaster]

I can't understand what's the problem? If you buy goods over the Internet then I doubt very much that the government will be able to trace you. You are beyond his reach. But this possibility is now very limited. Most users change their bitcoins for Fiat. For the government there is nothing difficult to obtain information about your income to the Bank account. This amount will be subject to taxation.

[EtihadBitcoin]

Can your government really be able to track if you never declared gains made from Bitcoin transactions?

Your government, like every government in the world is monitoring all bank transactions, that's enough for now. With time and effort, I'm sure a government could also monitor the blockchain, but I guess this isn't a priority as of today. The European Union is already talking about it, though.

The thing is that governments are not monitoring bitcoin transactions so they can not state that you made this much in the given tax year to claim on your FIAT tax form.

If they wanted to then they would be hiring crypto officers to follow these which I do not think they would be able to track each and every transaction anyways.

You think that each government will create own crypto department to audit all these transactions on the blockchain?

An impossible feat I would attest too.

[btc-facebook]

Since my government is not mentioned that bitcoin is illegal, we still can use bitcoin with own risk. And as I heard about recent update about government policy against bitcoin, they will not legalized bitcoin so there is no point for us to declare my bitcoin income.
In other side, I'm feel happy because I can use bitcoin without paying any tax

[liseff3]

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 the transaction happens between an online wallet and a real bank.
I think the government can track all transactions that occur through An interbank network, and the government knows where money comes from. Because, every system of the bank has been installed code a kind <hastag/tag>.
With a <hastag/tag> code the bank transactions engine can make a recording and automating the reports to the sekurity or related officers.

The quotation, “Every system is perfectly designed to get the results it gets."

[Ccexicocartel]

Yea, in the us you just cash out and they tax you on that. However, what your government is doing is very interesting. Would that mean higher transaction rates for you?

[Lancusters]

In my country there are no problems with using bitcoins. The government banned them and did not recognize. This allows me to freely use bitcoin but I remain cautious. I will not exchange the bitcoin to Fiat in large amounts. It allows me to stay in the shadows and not paying taxes. Large purchases I make only for cash.

[Qartersa]

I think there is a problem with this.

Some governments have no laws that corresponds to Bitcoins. -- Thus, people do not know how to treat Bitcoins in terms of taxing regulation since in the first place, Bitcoin is not even accepted in their country. Question now is, how can you tax an income you do not even accept or honor? In this case, these governments will be put in a contradicting position. That is, when they tax incomes derived from Bitcoins, it is indirectly saying it accepts/honors Bitcoins. Thus, they will be put in estoppel in the long run.

[darkangel11]

I think there is a problem with this.

Some governments have no laws that corresponds to Bitcoins. -- Thus, people do not know how to treat Bitcoins in terms of taxing regulation since in the first place, Bitcoin is not even accepted in their country. Question now is, how can you tax an income you do not even accept or honor? In this case, these governments will be put in a contradicting position. That is, when they tax incomes derived from Bitcoins, it is indirectly saying it accepts/honors Bitcoins. Thus, they will be put in estoppel in the long run.

You're going to far with it. It's all much simpler. How would you even attempt to tax BTC as a cryptocurrency. I'm not talking about fiat or goods bought with cryptocurrency but your coins that went from $60 to $6000 in 5 years. IMO it's still impossible and will remain so. You can trace transactions and you can target exchanges, but people who mined their coins or bought them with cash via a face to face exchange or an ATM are untraceable.

[sindikat]

I think there is a problem with this.

Some governments have no laws that corresponds to Bitcoins. -- Thus, people do not know how to treat Bitcoins in terms of taxing regulation since in the first place, Bitcoin is not even accepted in their country. Question now is, how can you tax an income you do not even accept or honor? In this case, these governments will be put in a contradicting position. That is, when they tax incomes derived from Bitcoins, it is indirectly saying it accepts/honors Bitcoins. Thus, they will be put in estoppel in the long run.

Governments don't think about it. They are not interested in what to take taxes from bitcoins is illegal. Their interests are only material. If you bought bitcoins and then sold them from the point of view of the government Fiat which you make on the account will be considered your income. It turns out that 2 times they take taxes from your income.