Knowing your tax liability

[cryptopulsepodcast]

Hey Folks,

I know this might not be everyone's favorite topic but we've done a podcast episode on knowing your Tax Liability!

You can listen here:

iTunes https://itunes.apple.com/us/podcast/id1333545783

Website https://www.cryptopulse.co.uk/episode-18/

Whilst it's most applicable for UK listeners, it contains some valuable info. Hopefully, it clears up and questions people have on this topic!

If anyone else has country-specific tax information perhaps you can share it in the comments?

[Palmerson]

It seems to me that the more popular the topic will be how to avoid paying taxes. Why do people voluntarily agree to pay taxes on the use of cryptocurrencies? In order to pay taxes, the government must provide full support to users. We can't see. That's why I don't feel obligated to pay taxes.

[lysha]

Pretty neat idea: add tax liability calculator in all crypto software. What do you think?

[Dasbeast]

Also tax information for crypto in the Netherlands?

[darkangel11]

It seems to me that the more popular the topic will be how to avoid paying taxes. Why do people voluntarily agree to pay taxes on the use of cryptocurrencies? In order to pay taxes, the government must provide full support to users. We can't see. That's why I don't feel obligated to pay taxes.

Not all countries require you to pay taxes on your crypto trades. Most of them want to have a percentage of your crypto to fiat trades, but crypto to crypto transactions are outside their interest and jurisdiction. Personally, I will not voluntarily disclose my crypto addresses to government institutions and I won't share any information regarding my cryptocurrency transfers. I'm also against taxes in general, but I'm not going to go to war with a bully that is much stronger than me. That's why if you trade for fiat and your country demands taxes it's either pay up or change the country.

[stomachgrowls]

It seems to me that the more popular the topic will be how to avoid paying taxes. Why do people voluntarily agree to pay taxes on the use of cryptocurrencies? In order to pay taxes, the government must provide full support to users. We can't see. That's why I don't feel obligated to pay taxes.

Not all countries require you to pay taxes on your crypto trades. Most of them want to have a percentage of your crypto to fiat trades, but crypto to crypto transactions are outside their interest and jurisdiction. Personally, I will not voluntarily disclose my crypto addresses to government institutions and I won't share any information regarding my cryptocurrency transfers. I'm also against taxes in general, but I'm not going to go to war with a bully that is much stronger than me. That's why if you trade for fiat and your country demands taxes it's either pay up or change the country.

My view about tax is really just an obligation which it isnt really should comes to a point on where we do against it since we do know that it do really help a certain countries economy for it to progress.Im a tax payer but would only be deducted to my day stable job.For now cryptocurrency things like exchange coins to fiat doesnt still have any tax being implemented.For some countries you are liable to have deductions but im sure sooner or later government would really have such act.

[botany]

It seems to me that the more popular the topic will be how to avoid paying taxes. Why do people voluntarily agree to pay taxes on the use of cryptocurrencies? In order to pay taxes, the government must provide full support to users. We can't see. That's why I don't feel obligated to pay taxes.

Not all countries require you to pay taxes on your crypto trades. Most of them want to have a percentage of your crypto to fiat trades, but crypto to crypto transactions are outside their interest and jurisdiction. Personally, I will not voluntarily disclose my crypto addresses to government institutions and I won't share any information regarding my cryptocurrency transfers. I'm also against taxes in general, but I'm not going to go to war with a bully that is much stronger than me. That's why if you trade for fiat and your country demands taxes it's either pay up or change the country.

You cannot say that crypto-to-crypto trades are outside the government's jurisdiction. The country where you reside basically owns you - you have to obey the rules. Even if you think that only crypto-fiat trades are trackable, at some point the government may get a whiff of your past crypto trades (when you finally convert crypto to fiat or spend it). They may then decide to come after you for making false declarations and back taxes.

[richardsNY]

You cannot say that crypto-to-crypto trades are outside the government's jurisdiction. The country where you reside basically owns you - you have to obey the rules. Even if you think that only crypto-fiat trades are trackable, at some point the government may get a whiff of your past crypto trades (when you finally convert crypto to fiat or spend it). They may then decide to come after you for making false declarations and back taxes.

If you obey the rules that are barbaric, you are basically agreeing to everything the government comes up with. In order to completely, or as much as possible disconnect yourself from any central environment, you have to transact locally on a peer to peer level. If you ever use a centralized service, and the government then browse through your logged activities, then yes, you'll surely get busted at some point. What I do is pay tax over everything that touched any centralized services, and keep everything that hasn't touched any service offline like it doesn't exist. I accept paying tax over what has been in contact with centralized services, because that's my fault entirely, but never accept paying tax over what I hold offline and isn't known to anyone.

[botany]

You cannot say that crypto-to-crypto trades are outside the government's jurisdiction. The country where you reside basically owns you - you have to obey the rules. Even if you think that only crypto-fiat trades are trackable, at some point the government may get a whiff of your past crypto trades (when you finally convert crypto to fiat or spend it). They may then decide to come after you for making false declarations and back taxes.

If you obey the rules that are barbaric, you are basically agreeing to everything the government comes up with. In order to completely, or as much as possible disconnect yourself from any central environment, you have to transact locally on a peer to peer level. If you ever use a centralized service, and the government then browse through your logged activities, then yes, you'll surely get busted at some point. What I do is pay tax over everything that touched any centralized services, and keep everything that hasn't touched any service offline like it doesn't exist. I accept paying tax over what has been in contact with centralized services, because that's my fault entirely, but never accept paying tax over what I hold offline and isn't known to anyone.

Fair enough. But even if you transact on a peer-to-peer, if you transfer fiat to a bank account, there is a trail. If you deal in cash, there are limitations on what you would do the cash and how much you can hold. Paying taxes is one way you can stop worrying about all the little details. It is a small price to pay, considering that the alternative may be huge fines/jail time.

[Ivandvanko]

the state wants to receive taxes even from going to the toilet ... why do ordinary people have to pay the country if the country does not want to take care of its people.  it's very sad.  We are not allowed to enjoy our short life 

[supermine]

the state wants to receive taxes even from going to the toilet ... why do ordinary people have to pay the country if the country does not want to take care of its people.  it's very sad.  We are not allowed to enjoy our short life 

Normally all the countries are running by people's money so we need to pay taxes if we think it is our country.But in many countries the politicians made the country corrupted and they are keeping all the people in their pocket not taking care of the people who are paying that money.But as a citizen of the country you need to do your duty correct and the rest is the government and its system in hand.

[makolz26]

the state wants to receive taxes even from going to the toilet ... why do ordinary people have to pay the country if the country does not want to take care of its people.  it's very sad.  We are not allowed to enjoy our short life 

Normally all the countries are running by people's money so we need to pay taxes if we think it is our country.But in many countries the politicians made the country corrupted and they are keeping all the people in their pocket not taking care of the people who are paying that money.But as a citizen of the country you need to do your duty correct and the rest is the government and its system in hand.

Well, regardless of how politicians corrupting our money it will be their moral responsibility, we'll just hope that they cannot sleep well at night as a consequence of stealing our hard earned money, but, needless to say, we still have to pay our liability for our country no matter what especially when law requires.

[ahmad21]

It seems to me that the more popular the topic will be how to avoid paying taxes. Why do people voluntarily agree to pay taxes on the use of cryptocurrencies? In order to pay taxes, the government must provide full support to users. We can't see. That's why I don't feel obligated to pay taxes.

I agree with you on this aspect. The problem with the government is that they want to earn revenue but they do not eant to provide any support in this concern. that is why most of the members of the community resent to pay taxes. They do not want to contribute anything towards the revenue of the government because they do not support the bitcoin community.

We can well evaluate our taxation liability, but what we want is in which country do we have to pay taxes and to what extent we are exempted from paying the taxes.

[Zadicar]

the state wants to receive taxes even from going to the toilet ... why do ordinary people have to pay the country if the country does not want to take care of its people.  it's very sad.  We are not allowed to enjoy our short life 

Normally all the countries are running by people's money so we need to pay taxes if we think it is our country.But in many countries the politicians made the country corrupted and they are keeping all the people in their pocket not taking care of the people who are paying that money.But as a citizen of the country you need to do your duty correct and the rest is the government and its system in hand.

Well, regardless of how politicians corrupting our money it will be their moral responsibility, we'll just hope that they cannot sleep well at night as a consequence of stealing our hard earned money, but, needless to say, we still have to pay our liability for our country no matter what especially when law requires.

Theres would always be a tax yet each country do imposes such law which its citizens are entitled to follow such rule which as being said this is really an obligation which we would need to pay up tax for the benefit of our countries progress and development.Every government is different some might be corrupt some are really following on tax actual usage which is good.This is why we would able to see ranking which are developed and which are on the bottom.

[BitHodler]

Every government is different some might be corrupt some are really following on tax actual usage which is good.This is why we would able to see ranking which are developed and which are on the bottom.

It doesn't necessarily depend on tax. If we look at how various states within US are doing, then the states with the highest possible tax rates are those who lag behind in basically every aspect.

In most cases the states with the highest tax rates are also those who make even the most simple thing a legal battle. Less tax and less regulations equals more freedom and more possible ways to develop yourself.

People should really stop thinking that paying taxes is solely for the benefit of the state or country itself. Seriously, people and businesses putting money together to do everything themselves are better off than having governments do it.

The majority of our tax money doesn't stay within the state or country itself.

[richardsNY]

The majority of our tax money doesn't stay within the state or country itself.

That definitely seems to apply to a lot European countries. It's insane that billions in tax revenue flows right into Brussels, while that capital could have been used in far better ways to improve education, healthcare, infrastructure, etc. I see around me how poverty even in Europe is becoming more of a problem than ever before, where regular education is severely losing the quality and prestige it once had. If you in current times want to actually develop yourself, you need to buy yourself into private colleges/schools, which isn't something each average person is capable of. Regular education is almost at a point where you can learn more yourself at home than wasting time in schools, which is the result of a reluctant government. If you don't invest in education, you are basically wasting the long term future of your country/economy.

[Tenderino]

Why not call the thread knowing your tax liabilty in the UK? I mean if it is about the regulation in the UK, how can people from other countries use it? Every country has its own tax regulation in regard to bitcoin or crypto currencies in general and you could even mislead people from other countries if they act based on UK tax laws!

[Fatunad]

Why not call the thread knowing your tax liabilty in the UK? I mean if it is about the regulation in the UK, how can people from other countries use it? Every country has its own tax regulation in regard to bitcoin or crypto currencies in general and you could even mislead people from other countries if they act based on UK tax laws!

I am with this which topic title is somehow misleading yet this is only pertaining on tax discussions based on UK! but we can still able to talk about tax related topic inspite on just focusing on UK itself.

The majority of our tax money doesn't stay within the state or country itself.

That definitely seems to apply to a lot European countries. It's insane that billions in tax revenue flows right into Brussels, while that capital could have been used in far better ways to improve education, healthcare, infrastructure, etc. I see around me how poverty even in Europe is becoming more of a problem than ever before, where regular education is severely losing the quality and prestige it once had. If you in current times want to actually develop yourself, you need to buy yourself into private colleges/schools, which isn't something each average person is capable of. Regular education is almost at a point where you can learn more yourself at home than wasting time in schools, which is the result of a reluctant government. If you don't invest in education, you are basically wasting the long term future of your country/economy.

Would like to know what kind of government do European countries have? Seems like theres a monopoly on this matter which all tax arent being applied into just ones place but rather distributed into some places.
Enhancing Education should really be focused on because it will really give an impact soon if the citizens of a certain country do really have degree compared into havent molded properly when it comes to education.

[gentlemand]

It seems to me that the more popular the topic will be how to avoid paying taxes. Why do people voluntarily agree to pay taxes on the use of cryptocurrencies? In order to pay taxes, the government must provide full support to users. We can't see. That's why I don't feel obligated to pay taxes.

People pay taxes to avoid having their life ruined. A pretty simple exchange.

What support do you want to see from the government? There's vast swathes of economic activity unsupported or actively hindered by government, that's no reason for them not to tax it until it squeals.

[gantez]

Knowing your tax liability is good and it helps you to plan on your income. It also makes an individual a responsible citizen. Evading tax payment is a crime.