Bitcoin allows tax evaders, Please pay attention....

[_BlackStar]

Bitcoin is not a new phenomenon in this century because after bitcoin was launched there were quite a number of other altcoin following it and competing to this day. Bitcoin's decentralization has so far always been the reason why many governments of the world dislike it because of its potential to be anonymous and can be transacted pseudonymically. These things are always used as reasons why the government issues regulation for bitcoin users to comply with the law so that there are not many cases of abuse.

There is some constant discussion about the possibility that tax evaders may really like bitcoin but in reality it is still difficult for most users to do because of the influence of lifestyle and desires. On average we want to have a luxurious life, have a car, have a house, and something expensive if we have a lot of bitcoin. This is a natural human instinct so it becomes an advantage on the part of the government in detecting abuse. The reported treasures may not match one's lifestyle so this suspicion will only end in an in-depth investigation to reveal the motive behind it.

The main problem with tax evaders is lifestyle, so I think this is a unique reason why tax evaders really didn't make it with bitcoin in the end. In the end I truly believe that if we still desperately want to live lavishly on bitcoin and other assets to avoid taxes, then this is really not going to work because sooner or later the government will smell it. After all governments can still get evidence from blockchain if they want to conduct an investigation into this matter, so consequences are always there if someone wants to use bitcoin to evade taxes.


If you want to avoid taxes with bitcoin, then never live in luxury and minimize your lifestyle. This a Jokes. 

[palle11]

The main problem with tax evaders is lifestyle, so I think this is a unique reason why tax evaders really didn't make it with bitcoin in the end. In the end I truly believe that if we still desperately want to live lavishly on bitcoin and other assets to avoid taxes, then this is really not going to work because sooner or later the government will smell it. After all governments can still get evidence from blockchain if they want to conduct an investigation into this matter, so consequences are always there if someone wants to use bitcoin to evade taxes.


If you want to avoid taxes with bitcoin, then never live in luxury and minimize your lifestyle. This a Jokes. 

Depending on the tax laws of a particular government but it is difficult to trace accurately because evaders will always find their way.to run away from paying tax. What government can do is to conduct a registration of payable tax in bitcoin and do a link to the bank account of the payer but even with that, the exact amount to pay is not verifiable because some wallet can be concealed from the agency.

On a second thought about living a luxurious style, the way of life of some people won't be stopped because they own bitcoin or not. Some make wealth from different angle including trading and excluding hodling 

[noorman0]

-snip-

The main problem with tax evaders is lifestyle, so I think this is a unique reason why tax evaders really didn't make it with bitcoin in the end. In the end I truly believe that if we still desperately want to live lavishly on bitcoin and other assets to avoid taxes, then this is really not going to work because sooner or later the government will smell it. After all governments can still get evidence from blockchain if they want to conduct an investigation into this matter, so consequences are always there if someone wants to use bitcoin to evade taxes.

But does to meet the lifestyle, one has to bring everything from abroad? And can you just get away with excise taxes?

To this day, Bitcoin is still completely useless in countries where it is illegal to pay (if it refers to the purpose bitcoin was created for). And that's the fault, the government didn't embrace bitcoin from the start, so after reaching large caps they felt aggrieved. And keep in mind, bitcoin is not really anonymous, but more transparent. There is no reason to evade taxes with bitcoin.

[Ozero]

The problem of tax evasion when working with cryptocurrency has been discussed for a very long time and, in principle, it is relevant. True, for many, this problem still does not exist, since many states have not yet legalized cryptocurrency and have not decided on the tax on it. However, in those countries where the competent authorities have already established such a tax, we are faced with a choice - to pay or to evade. I believe that if the tax is small, then it is better to pay it and work calmly. If it is prohibitively large, then most likely our decision will depend on the degree of possibility of such a deviation. Here, everyone must make an independent decision.

[Ucy]

A government can effectively monitor the income of those that are dependent on it even if they use Bitcoin. It could build tools to track how their dependants use what the government gives to them. Funds could be given to the dependants on the condition that it will be monitored and taxed, unless they nolonger want the free money.
I wonder if a government have the rights to tax those that are independent of it?  I think the independent ones should be free from the system spying on their wealth/values. After all, physical money do offer higher level of Anonymity and has been doing so for thousands of years. The independent/free people should benefit from the anonymity. They owe the government nothing.
The government can however beg the independent ones to support them through voluntary contributions. They could also be charged indirectly when they use facilities built by the government rather than unnecessarily spying on their crypto/bank accounts

[hugeblack]

It is not the year 2011 or 2013 when governments did not learn to meet and thus impose taxes, but many countries develop their tax regime to become all bitcoin transactions need to be reported. In other words, when they achieve profits will pay taxes.
Generally, within 10 years and increased bitcoin network analysis  tax evasion will not be particularly high if governments issued Min tax report.

[davis196]

The main problem with tax evaders is lifestyle,

NO.The main problem with tax evaders is the fact that they are committing a crime+their greed.
All the rich people can live a luxurious life without trying to hide their income and trying to avoid paying taxes.
The problem is that they want more and more.
It's 10 times more difficult for middle class and working class people to commit tax evasion crimes.They simply don't have good tax accountants,offshore bank accounts,fake companies,etc.
Bitcoin has nothing to do with this.Maybe some tax evaders are using BTC to commit tax evasion crimes,but the vast majority of the tax evaders are using the fiat financial system for tax evasion.

[fiulpro]

Honestly in most countries you are paying higher taxes if you are holding bitcoins and at the same time you have to also realize that, it's more or so impossible to evade the taxes because most of the wallets now require KYC done which does mean that without KYC you would not be able to do anything else and the government would know about your investments as well.

- In very few countries bitcoins is not taxed and there as well, the rules and regulations are changing as well, therefore the government is now doing everything they can to catch such people.

If you do KYC then you have to submit your documents which does mean that it would be connected to your tax payer id which would be connected to your bank account as well.

[noormcs5]

It is not the year 2011 or 2013 when governments did not learn to meet and thus impose taxes, but many countries develop their tax regime to become all bitcoin transactions need to be reported. In other words, when they achieve profits will pay taxes.
Generally, within 10 years and increased bitcoin network analysis  tax evasion will not be particularly high if governments issued Min tax report.

How can government take the taxes on bitcoin if they had not made it legal ?
The only way government can tax on bitcoin and crypto currencies, if they make it a legal tender and make regulations on crypto taxes. Unless they don't do it people will keep on enjoying the tax evasion as there is nothing documented legally about crypto tax.

[dzonikg28]

The main problem with tax evaders is lifestyle,

NO.The main problem with tax evaders is the fact that they are committing a crime+their greed.
All the rich people can live a luxurious life without trying to hide their income and trying to avoid paying taxes.
The problem is that they want more and more.
It's 10 times more difficult for middle class and working class people to commit tax evasion crimes.They simply don't have good tax accountants,offshore bank accounts,fake companies,etc.
Bitcoin has nothing to do with this.Maybe some tax evaders are using BTC to commit tax evasion crimes,but the vast majority of the tax evaders are using the fiat financial system for tax evasion.

Haha, but how did they become rich in the first place then? Rest assured the rich people are hiding so much money that you can't even imagine. I talked about that before. Check out the scientific research by Gabriel Zucman and you will see that it's the rich people who are hiding money and other assets. Does that surprise you? I mean they are able to pay the best consultants, best lawyers and have the strongest networks across the whole globe. That makes much more sense to assume that those people evade taxes than the ordinary Joe from around the corner who could only hide some cash in his basement.

[skarais]

How can government take the taxes on bitcoin if they had not made it legal ?
The only way government can tax on bitcoin and crypto currencies, if they make it a legal tender and make regulations on crypto taxes. Unless they don't do it people will keep on enjoying the tax evasion as there is nothing documented legally about crypto tax.

Centralized exchange, this is the result of government regulations to find out who owns the most assets and who will avoid taxes. The government may not impose a tax on bitcoin like most other properties, but it can impose an income tax on any bitcoin user (trader or investor) or on anyone who is a qualified taxpayer even if the government does not legalize bitcoin as a legal currency.

_BlackStar, if you live in any country of law then you must obey the rule and must not break them because it will only make you accept the consequences. Governments have so far managed to control most bitcoin users, but they cannot control bitcoin transaction. Bitcoin is also not made to be the enemy of government regulation, but this asset allows us to take advantage of alternative payment networks that are much better than fiat.

[Leviathan.007]

Not only to me but I think it was clear to everyone that since bitcoin will bring the users economic freedom where they can avoid paying tax, the governments will surly try to somehow detect the bitcoiner and the people who earn with bitcoin to get tax from them, the whole point is the governments are based on the tax we pay and they cannot survive without of the taxes. Imagine you become a millionaire from bitcoin and you try to buy a luxury house and car, this can be obvious for any government to track you can make you pay the tax over the money you spend.

[paxmao]

Bitcoin is perfectly useful for tax evasion, as it is the US dollar, diamonds and many other stuff that has value. Tax evasion is not as much about choosing the vehicle as it is about actually willing to take the risk of doing it. The relation with bitcoin is that people who made a decent fortune with bitcoin may decide that they do not wish to pay taxes to a government that somehow did not put any into it and only gets the rewards. In that case, crypto is useful because it allows you to be pseudo anonymous and perhaps changing your fiscal residency before cashing out.

[carlfebz2]

Not only to me but I think it was clear to everyone that since bitcoin will bring the users economic freedom where they can avoid paying tax, the governments will surly try to somehow detect the bitcoiner and the people who earn with bitcoin to get tax from them, the whole point is the governments are based on the tax we pay and they cannot survive without of the taxes. Imagine you become a millionaire from bitcoin and you try to buy a luxury house and car, this can be obvious for any government to track you can make you pay the tax over the money you spend.

Its actually one of the cons i would say on governments perspective and thats why they do really tend to crack up into those crypto users and since it cant

be possible then this is where they do focused on regulating platforms which is attached to crypto and we know that people cant make out fiat
conversions or buys if they wont tend to comply on whats been asked.

Tax evasion is one of the most common problem and the thing on why government do hate up crypto as a whole.

[Hydrogen]

Bitcoin transactions are viewable via public ledger. Which is debatably an open and transparent format. Intended to make life harder for tax evaders, criminals and money launderers.

Transparency in budgets, finance and economics used to be a hot topic. When Barack Obama was first elected President in 2007. One of his first moves was to establish a website that made federal government spending more transparent. There was a website people could visit to see how state funds were being allocated & spent. Of course as expected, no one paid any attention to this. It was the polar opposite of watchdogs on big btc transactions today. But it is an interesting historical landmark. And perhaps evidence of how former US Presidents like Barack Obama might support bitcoin's public ledger system on an ideological level. If only they understood it better.

[dothebeats]

The only ones who can efficiently evade taxes are the ultra rich and not those in the middle and lower middle class, so no, I don''t think using crypto and living within ones means can help save you in your tax evasion case. The government is actively monitoring your purchases, and all your profits, salaries, and whatever properties you purchased. They have their eyes locked on people's spending and kid you not they will try to prosecute you than they would the ultra rich.

[Darker45]

Don't you think you are generalizing too much? It's not as if these tax evaders are that clueless. You have to somehow have a front. You simply cannot just live on your Bitcoin alone without paying taxes and without a business, without a job, without anything and yet have everything in terms of lavish lifestyle. That would be suicide. That's like knocking on the tax bureau's door itself.

[_BlackStar]

Obviously this depends a lot on the tax laws of a country but it is true what some of you have said that it is difficult to evade taxes with bitcoin because ultimately the government can track incoming and outgoing transactions when we use a centralized exchange.

While bitcoin allows us to remain anonymous, we basically can't do much when financial privacy is not maintained. Elon Musk and Michael Saylor will probably be the target of the tax regime for the assets and wealth they own, so they can no longer hide from taxes in my opinion.

[Wexnident]

But tax evasion has been a thing prior to Bitcoin's existence though? It's not like it's a magical action that suddenly became possible due to Bitcoin being created. Tax evasion is an activity that's done by someone, not by something. So blaming Bitcoin is rather stupid really, not to mention that there's no central existence that governs over it. Besides, most countries are now making proper regulations with regards to crypto so I don't think tax evasion using it would be that rampart, especially since most exchanges require KYC now adays.

[Poker Player]

I don't see much point in the thread. The OP talks about tax evaders as if everyone who evades taxes does so in large quantities. There are plenty of people who don't declare small amounts because they know it's virtually impossible to get caught and prefer to save on taxes. So to those people, what the OP says about lifestyle does not apply.

And the big evaders already know enough and have tax advisors and lawyers, so I don't think they care much about what the OP says on the subject.