Bitcoin payment laundering in order to avoid taxation

[franky1]

if the amounts are considered as "money my grandpa put in my christmas card" dont worry too much about tax. no one cares

if its wage, lambo, mansion amounts get an accountant or just pay your tax. dont risk evading(illegal) tax unless you know the loopholes to avoid(legal) paying tax

different countries have different rules..
many will say only tax liable when funds are withdrawn as fiat.

a few people in this forum may mention some UK/US loopholes.

but they may not work in your country. so try to learn about tax if the amounts are equivalent to wage/income levels or more.

[1715324283]

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[Welsh]

You should absolutely file any income as taxes, including Bitcoin. It will vary by country so check with your local laws on how they handle it. However, the vast majority of countries are now treating Bitcoin income as normal income tax, and therefore would be subject to your normal income tax rate. If you've invested in Bitcoin, and haven't sold yet that's a little different as that would be subject to capital gains once you've sold it for a profit. However, income is largely treated the same universally, and has to be filed to the tax man.

Obviously, a lot of users don't, but ultimately you would be breaking the law if you don't file those taxes. Plus, the Blockchain is public, and only offers pseudonymous, therefore it's probably not the best idea to avoid taxation with Bitcoin. Hence why cash is used worldwide as tax evasion. Bitcoin, despite its reputation isn't the best thing to use, which is the annoying part as it does have this sort of reputation.

[lionheart78]

Hello I have started accepting payments with bitcoin due to its anonym state. Should I state them at my taxes as payments? Should I just spend them as a bitcoin on groceries and under 1,000 payments? Also, is it worth it to take them in cash using a crypto atm? What is my best option to not get this money tracked and taxed?

This depends on your country's law.  But once you convert your Bitcoin to cash, it is a sure thing that you have to report your transactions and pay taxes.  I won't encourage you to tax evasion because it would be a huge problem if the government uncover your crime.  If you keep your Bitcoin as is, and your country has no policy yet for cryptocurrency, I think you are safe from tax, though I thikn it won't be long because governments are now devising a scheme where they can tax our cryptocurrency directly.

[justdimin]

Hello I have started accepting payments with bitcoin due to its anonym state. Should I state them at my taxes as payments? Should I just spend them as a bitcoin on groceries and under 1,000 payments? Also, is it worth it to take them in cash using a crypto atm? What is my best option to not get this money tracked and taxed?

It depends you are running a business then you can't evade because IRS will know what you are getting so you will be forced to pay taxes if you evade but avoidance isn't illegal so learn to use avoidance but never ever try to evade since its illegal and also this forum doesn't encourage any kind of criminal activities in any jurisdiction.

Crypto assets aren't made for tax evasion and you can evade with fiat too so its just the medium and it doesn't help you when you decide what you are going to do.

Crypto ATM conversion isn't that cheap so you are paying premium price or they take big chunk as commission.

The problem with IRS is the fact that they won't tell you how much you owe them, so you have to calculate and pay them yourself, but if you pay less than you should, they will punish you for it and tell you that you should have paid more and now you are punished.

This means they know how much you should pay to begin with, because if they didn't know then you wouldn't be caught when you paid less, so they know, and they still didn't tell you at the start. In most other nations that is known and whatever IRS is called in your nation, they will tell you how much you should pay, and you pay it and move on. That is EXACTLY what American's need for sure.

[eddie.gouws]

Thank you all for your answers they helped me a lot

[pooya87]

The real question is if you want to commit a crime and evade taxes, of course the taxation itself depends on the country you live in since the laws about what is taxed and how depends a lot on your country. But also remember that the government doesn't tax your payments, they tax your business. In other words it doesn't matter how you receive payment (credit card, hard cash, bitcoin or monero) in the end you are still running a centralized service inside the regulations with a license (hopefully!).

[Solosanz]

You need to use decentralized exchange and reputable Bitcoin mixer in order to make your coins untraceable, but the main problem would be when you transferred your money to banks and the banks will ask you how you can got those money? where's the source come from?

If you can't answer it and make them satisfied, your account would be confiscate by them.

I'd say using those site is really good to hide your identity, but don't use it as a crime (avoid taxation).