Is Taxing Bitcoins Possible?

[investerS]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

[londoireng]

Im not an expert too, but in my point of view its almost imposible to do that. Cause is untracable right ? if you dont know who hold it can you tell that people to pay the tax, for example i live in the usa where tax is mandatory but goverment have no proof that i have bitcoin. can they taxing that ? Spoiler allert, if you not tell them that you had, they cant.

[honeybites]

Giving tax for being bitcoin holder is not possible as nobody use their own names or personal details for holding bitcoins in their wallet cryptos give high end privacy for their coin holders and it is not practical for any government to find out how much btc a person is holding so giving tax for holding btc is not something which is practical.

[CornHub]

Bitcoin unlike any other currency existing is decentralized, furthermore it is not run by capitalist and elitists, which I think is a good reason not to make bitcoin subject for taxation because although it is run by private sectors it is not run by private elitists. furthermore, we are anonymous when we enter the bitcoin world so I think it is impossible to track and tax the users themselves.

[penig]

Governments dont tax financial transactions (normally), they tax capital gains (profits) or income (from traders making an income).  Same rules apply to cryptocurrencies. And normally its on you as a law abiding citizen to follow your country's tax law and declare your gains/income.  If you dont, and they find out, big fines and possible imprisonment.  So make as much money as you like within cryptocurrency world, as soon as you exit you will be liable to tax.  Buy services direct with Bitcoin might help stay under the radar, or full under the threshold for investigation.

[bug.lady]

Governments dont tax financial transactions (normally), they tax capital gains (profits) or income (from traders making an income).  Same rules apply to cryptocurrencies. And normally its on you as a law abiding citizen to follow your country's tax law and declare your gains/income.  If you dont, and they find out, big fines and possible imprisonment.  So make as much money as you like within cryptocurrency world, as soon as you exit you will be liable to tax.  Buy services direct with Bitcoin might help stay under the radar, or full under the threshold for investigation.

I think that they have means to detect your unpaid taxes from capital gains or income: look at the US IRS which expressly asked exchanges to pass all the relevant transaction information to them, as well as currently enforced KYC (know your customer) regulations in many countries. The only way to get undetected is to engage in exchanges of bitcoin into fiat with private parties (from localbitcoins, for example)

Also I am reading news that services directly paid with bitcoins are being subjected to VAT tax in many countries, or at least it is planned so it will be the case in near future. So the window of opportunity may be closing here.

Seems that localbitcoins will shortly remain the only option available...

[datodota002]

it's possible to do if the goverment and bank cooperate with the exchanger to know all the user asset in the exchanger. so when the user send their bitcoin from their wallet to the exchanger wallet to cash out the money and then list the bank account to cash out and then report to bank and tax authority. in my opinion that's another way to taxing the bitcoin user.

[usahaali04]

Sorry I'm a new person in bitcoin world, what is an IGR? I do not understand, I hope you as a thread maker can tell me about IGR, I am very curious.

[Assface16678]

It is decentralized in the first place and we know that tax is can be generate by the government or institution. I don't think that bitcoin can be taxed by these government because they cannot control it. I think that is why are doubtful about this cryptocurrency because if they cannot control it the result will be unpredictable too, i guess they are taking taxes on the wallets we are using there are some part on fees that government will receive.

[raniadaling]

It is theoretically possible, but it is quite hard to trace identities of bitcoin holders or positively ID holders with their personal details. Therefore, it is hard to implement taxation protocol with bitcoins. Moreover, high end privacy for bitcoin holders is implemented..so all the more reason to say that it is practically difficult for any institution or government agencies to identify the bitcoin asset of a holder of an account.

[nirmalaayi]

I'm new in the cryptocurrency world but i think it can't be possible to taxing bitcoin because as long the bitcoin is safe in the personal wallet it will still under the radar and can be tracked by goverment or tax authority. and there are many way to cashing out bitcoin and that will be another problem to thinker who want to taxing bitcoin.

and in my opinion taxing bitcoin is the core problem for govement, this problem that make bitcoin banned to goverment because there still no way to taxing it. so until that problem still unsolved many country will ban bitcoin

[welljo0108]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

I dont think so it can be possible to have tax a btc because some using of btc can stopped it.if the government knows that btc is growthing maybe they can take an action about that issue.

[Chandler32]

it's possible to do if the goverment and bank cooperate with the exchanger to know all the user asset in the exchanger. so when the user send their bitcoin from their wallet to the exchanger wallet to cash out the money and then list the bank account to cash out and then report to bank and tax authority. in my opinion that's another way to taxing the bitcoin user.

I agree with this since it is a very pratical and possible way. I mean, how is Japan accepting Bitcoin without taxing it? I think they have found a way around this... Correct me if I am wrong.

[eaglewhite80]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

Taxing can really work if you are converting to fiat, since that would be more like a capital gain tax. However, bitcoin to bitcoin transaction? I am not sure how that can be pulled off. Bitcoin is pseudo anonymous and unless the government finds a way to know who is attached to a particular public address, which is impossible since I can always decide to change my pub key anytime i wish, then with that, I really do not see the possibility of taxing P2P transactions.

[julius caesar]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

Well I think its possible but I think the control will be here not in hands of the governments. I think taxes were great so as an individual you fulfilll the responsibility to help your own community, I think in transactions they already made this and its not enough for the services and taxes . This may help our community though.

[penig]

I'm new in the cryptocurrency world but i think it can't be possible to taxing bitcoin because as long the bitcoin is safe in the personal wallet it will still under the radar and can be tracked by goverment or tax authority.

Just the same as holding shares, while they sit there on account/paper certificates, the value can ballon and no tax is collected.  Sell them and tax is due.  Bitcoin is no different.  Governments really aren't as concern about this as people think, because the tax system already covers them.

[Pasaway2701]

Bitcoin unlike any other currency existing is decentralized, furthermore it is not run by capitalist and elitists, which I think is a good reason not to make bitcoin subject for taxation because although it is run by private sectors it is not run by private elitists. furthermore, we are anonymous when we enter the bitcoin world so I think it is impossible to track and tax the users themselves.

I agree that it is impossible that bitcoin become taxable but as a user of bitcoin, even we are anonymous, we can pay tax in other way. We pay tax but not in way directly from bitcoin, during the transaction of bitcoin we pay for the fee to other agency that handles it. Like if we have cashout our money, the bank which process it will add a fee which contain additional tax from it.

[maxj57634]

I dont think that bitcoin is taxable unless the person holding the bitcoin declares it as part of his/her property. This is the only way that the government can put tax on bitcoin but for the technology itself is not taxable. Government has been finding ways to tax their people who hides their riches in bitcoin and so far non has been implemented.

[Ranly123]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

It would be posible when you are using a wallet that is regulated by the government and also when changing your fiat money to bitcoin. Dont need to worry about tax because it is used for the security of your account.

[Painbird]

I have don't lots of idea of this topic but i think its not possible to track the bitcoin transaction by government. The transactions only happen by two person. No one can know it. But I think there will be a decentralise platform could be invented to track that by government. It will helps bitcoin to legal it whole over the world.