Tax optimization via digital currency

[buwaytress]

Countries with good economic experts have tried to formulate tax policy that will cover digital currencies e.g France but this policy have not perform well when it comes to cryptocurrency due to it decentralized nature and unstable market price which makes impossible for cryptocurrency users to be taxed effectively. Before any country can be able to receive tax from crypto it has to first of all regulate the cryptocurrency market and regulations also is near impossible.

Some gross overestimations here. Countries may have good economic experts, but these are seldom the same ones formulating tax policies. How a country formulates any of their economic and fiscal policies generally has to do with leadership and type of government. Which is why you get wildly differing tax policies for Bitcoin all across the world - if at all they exist.

Tax policies in these cases also seldom react to Bitcoin. Instead, how Bitcoin is categorised will determine how it is taxed. In cases where it can be categorised as an untaxable personal property, for example, sure, it can be a means to optimise tax. Bear in mind, tax optimisation or "avoidance" is barely legal, definitely frowned upon, and with time and legislation on its way, will soon become completely illegal.

[imstillthebest]

what you say is very reasonable, tax payments will be very easy and very optimal when using digital currencies, but not with crypto currencies. because this coin is not stable so it will cause chaos in the economy if the crypto currency is used as a tax payment transaction tool.

cryptocurrencies is also consider as a digital currency and using crypto as a medium to pay tax  is okay  . being volatile is not a problem because cryptos were even use on stores/shops  .  but i think crypto users wont only agree if working here on the forum or working on a crypto related job will also get charged by a tax  not unless if you are living on a country that have that kind of law  .

[Tylev]

It is unlikely that a cryptocurrency can help to optimize taxation in some state. On the contrary, taxation of owners of cryptocurrency will create a lot of problems for the tax authorities. After all, a cryptocurrency is relatively anonymous and many of its owners will evade paying taxes. In addition, even with a great desire to pay such a tax, it is very difficult to calculate, based on the high price volatility of cryptocurrency. Legal entities will have even more problems, especially if there are a lot of transactions and for small amounts.