Bitcoin and not Paying Taxes

[Topaz72]

Since their is no third-party related to bitcoin no one can trace your transactions but the user and the receiver only, therefore they cannot apply tax. However if we change our bitcoin to fiat money to spend, its the time tax comes in. Maybe in future if bitcoin can be legalized then government might implement tax for every use of it.

If you are honest enough, you can even declare it in your annual personal income tax. And as quoted above, only cryptos that converted to fiat must be subjected to tax.

There is no bad if you are paying tax mate, it is making sure that government is involved your bitcoin so it will increase the interest of people so they will invest in bitcoin and they will try buy bitcoin, it is very easy to pay the tax if the income tax department has the bitcoin service and they will help people to pay for the taxes without going out of home, having high amount of bitcoin will fix the tax that people will have to pay so I think government should fix the reasonable tax that people will pay happily to make safe and fast transaction.

[frowsiter]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

That's big lol man. Off course if we covert any crypto to fiat then it is ttackble and almost in every other country this conversion osbytacble by banks. They will catch you and they will catch you bad if you have not paid the taxes for the same. It will be our fault if you don't pay the taxes and get caught for that. In reality we must pay taxes and that can bring us good and nothing else. It will help the countries economical development and we can just be relaxed when we see good statement made by our banks. At least that's how it work in my country.

[palle11]

People who will get scared about catching up in the future are people who try to beat the rules. If a country is taxing on certain things for instance bitcoin, it is a call to duty on the part of the citizen. Such accumulated fund would be collected at one time or the other and it might be when not expected.

[Ahiaba]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

Well all depends on the country you live as to whether they support or accept Bitcoin and crypto currency as means of exchange for goods and services because that is the basis in which one cannot completely deviate from paying tax to the government. But is not accepted as a means payment for goods and services here in my country and that has given me leverage not to pay tax from all my crypto currency business.

[repan]

If you want to live in a normal country and have social benefits pay you taxes, i know you as an individual don't make any difference but lead as an example

[Semosuchi Tesongrato]

At present, there is nothing clear about bitcoin, so - even if you had a so big desire to paying taxes(!) - it wold be probably impossible.
Btw, I'm pretty sure that in short time goverments will find a way to control bitcoin addresses and transactions.
But I also think that - for smart people - I won't be too difficult to find a way to not be caught...

[btc.xbt.btc]

This is a bit of a generalisation, it will for sure be very dependent on the country you are a legal (tax) resident of.

[MMA]

At present, there is nothing clear about bitcoin, so - even if you had a so big desire to paying taxes(!) - it wold be probably impossible.
Btw, I'm pretty sure that in short time goverments will find a way to control bitcoin addresses and transactions.
But I also think that - for smart people - I won't be too difficult to find a way to not be caught...

Yes currently there is no tax on bitcoin, and the reason is that currently most of the countries have not yet turn bitcoin a legal currency and there is no rule to put tax on illegal item, therefore bitcoin is currency tax free, but i think that when countries will consider bitcoin as legal currency then there are more chances that the will also impose tax on bitcoin.

[P3]

As a result of the way Bitcoin is being exchanged without charge installment because of it's distributed idea, not that we need to or are cheerful maintaining a strategic distance from impose, to a few of us that are really dutiful with our respectability. We are sitting tight for the time where a sort of control is been crashed into the arrangement some way or another and ideally. It's not all that agreeable to our income office here auditing Bitcoin profit that is yet to be accepted by our Government profit to be exhausted is only the issue.

[bechay20]

If bitcoin can be legalized then government might implement tax we have no choice but to pay tax,but since their is no third-party related to bitcoin no one can trace your transactions but only the user and the receiver,they cannot apply tax.

[toygama]

You have to pay first your taxes even small taxes you should pay it.

In our country all business man, government employee and even athletes are need to pay there taxes. How much more if your earned million and you have luxurious house and cars.

Cryptocurrencies are decentralized government has no full control in any income derived from it. But if you use your income to purchase anything still the government earned taxes from your money, the more people engaged bitcoin the more money also back to the government.

[rocketbits]

When you convert it to fiat, you pay tax on what you convert it. You don't have to pay on the Bitcoins you have.

Now you will have to pay taxes even on the cryptocurrencies you hold. Governments have started regulating the cryptocurrencies all over the world. The exchanges now will record each and every transactions that occur and will make it all transparent to government thus it will make people pay taxes for holding cryptocurrencies beyond a particular time period. Therefore people will no longer be able to hide their black money, sooner or later it will all come out.

[neonshium]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

If you are trading in cryptocurrencies or investing in them, you must pay your taxes. Its better to pay certain amount every year rather than losing all your profits and investments later after getting caught.

Though, if one sells crypto locally and convert it into cash, the government wont be able to track it but if you convert your cryptos into fiats at exchange, government will get to know. So always pay to taxes to maintain faith between locals and the government so that cryptos are not banned or made illegal.

[el kaka22]

Since their is no third-party related to bitcoin no one can trace your transactions but the user and the receiver only, therefore they cannot apply tax. However if we change our bitcoin to fiat money to spend, its the time tax comes in. Maybe in future if bitcoin can be legalized then government might implement tax for every use of it.

Most of the country did not collect tax from bitcoin.Because they have not yet a guidelines that mandated to bitcoin user to contribute their taxes.  They have no rule yet bieng implemented about collecting tax from bitcoin. But their are also other country are now start collecting tax from bitcoin. Because they accept bitcoin as legal tender in their country.

Personally, my country is really not strict with tax laws anyway and I really do not care and except for those working for the government, or the big companies, I can decide to keep my crypto, or convert it to fiat and go ahead with my daily activities. I am not against paying taxes, but for a country that is really not bothered about me, not giving me all I need even if I pay tax despite the huge amount being generated from all the natural resources daily, most especially oil and gas, why on earth should I want to go pay tax ? I would rather give it to a charity organization.

[Techie5879]

If a country requires payment from bitcoin profits, then there is no way out. You have to pay tax or it will end badly.

Definitely agreed. However it seems a bit disheartening to put taxes even on something that is not owned/controlled by the government, that is completely decentralized in nature. Really, there is no way out, cuz atleast once you will have to convert your money into fiat, and if a large amount of money is done so, it would end up you getting some pretty serious charges in some countries.

In my country, India, the finance minister reported that the government will be looking into it but haven't finalized anything yet so that's that, we don't have to pay taxes, YET, but they are discouraging people from using bitcoin, specially as they can't control it, I reckon.

[hammerhart]

i am fine paying taxes on my bitcoin/crypto winnings...i recently did my taxes for last year and realised i also should consider my bitcoin winnings... For me honestly the biggest problem is to report them properly- i mean there are tools like https://cointracking.info?ref=H662021. But as a small trader (~800 trades) on 4-5 plattforms it is just hell to do it properly in a reasonable amount of time...
So to be honest i can imagine a lot of people not going down the road not paying taxes...However i just hope there will be made an adjustment soon - at least where I live - to simplify the procedure includuing ICO, Airdrops, Referal stuff...because otherwise it will be hell- esp with plattforms like coinsmarkets- which do not allow export data but support staking....So lets hope the government is taking care of important things in life

[Naughty Princess]

Since their is no third-party related to bitcoin no one can trace your transactions but the user and the receiver only, therefore they cannot apply tax. However if we change our bitcoin to fiat money to spend, its the time tax comes in. Maybe in future if bitcoin can be legalized then government might implement tax for every use of it.

If you are honest enough, you can even declare it in your annual personal income tax. And as quoted above, only cryptos that converted to fiat must be subjected to tax.

Paying transaction fees considered that you already pay tax. We just cannot see because it is indirect paying. The private offices who handle that transaction is responsible to pay for the whole tax of it.

[Bitcotalk]

We don't have to worry about taxes for the cryptocurrency, at least for now. Because most countries do not have regulation about paying taxes if citizens convert bitcoin to fiat currency, unless you live in the US then you have to pay tax for capital gains because IRS said so.
There is plenty of room to avoid bitcoin taxes for Americans such as send bitcoin to your family or friend in Europe to convert bitcoin and then transfer the money through banks or remittance, but no need to avoid taxes obviously, just pay it.

Most of the countries have already started regulating cryptocurrencies and setting up rules such as India, South Korea and many others. Government officials are raiding the people that have known to invest in cryptos and are known to have not been paying taxes on it. South korea has already implemented strict rules with respect to crypto assets. Its in the favour of government as well as locals if people just pay their taxes on the yearly profit they earn.

By paying taxes faith can be maintained between government and public therefore possessing no threat towards banning of crypto or announcing them illegal. Cooperation with government is only way one can grow in crypto business.

[sana54210]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.

https://www.youtube.com/watch?v=hf2fNEUPjQw

You should always pay your taxes, especially if you're in a country that cracks down on that sort of thing (US for example). That kind of thing is no joke. That's how they got Capone.

I would say you should handle it like any other investment. Treat it as either a capital gain or a capital loss. Offset the gain against your basis and pay the taxes on that whenever it's due. Some of the exchanges like Coinbase give you a history log of all your transactions. I would take that log at the end of each year and do the math on your profit or loss, and that's your taxable gain.

I see no reason why people don't like paying their taxes. it is always very good to pay your taxes because it helps a lot in building your country's economy. In some countries government use tax money to do new projects such as building new schools, roads, and hospitals. I don't know about you but for me, i see nothing wrong with paying tax at all. I think it's good to pay your tax if you love your country because that way you can help your country move forward.  

If you love your country pay your tax, period!
Some guys here are even lucky their government is doing something good to help them. You should be thanking God for that.

Not all people think as we do. People try to find as many ways as they can to save the tax they pay. This case if with most of the people. No one wants to give their 1/3rd of hard earned money especially when there is no seen development in the country by government.

Usually many government officials are corrupted thus preventing the development of the country. People consider investment in crypto as a secure way of getting away from paying taxes, but government will surely find a way to crack down this and make people pay the taxes the owe.

[katarin2030]

Since their is no third-party related to bitcoin no one can trace your transactions but the user and the receiver only, therefore they cannot apply tax. However if we change our bitcoin to fiat money to spend, its the time tax comes in. Maybe in future if bitcoin can be legalized then government might implement tax for every use of it.

If you are honest enough, you can even declare it in your annual personal income tax. And as quoted above, only cryptos that converted to fiat must be subjected to tax.

Paying transaction fees considered that you already pay tax. We just cannot see because it is indirect paying. The private offices who handle that transaction is responsible to pay for the whole tax of it.

Bitcoin is not controlled by the governments that's why they cannot collect tax from the bitcoin, precisely bitcoin is a decentralized currency known to all so paying tax is not compulsory here. Some countries are mulling to collect tax from bitcoin.