Can we avoid crypto taxes with other users assistance?

[Moreno233]

The only taxes we pay in my country is stamp duty on every credit received by citizens irrespective of the source, and normal Personal Income Tax (PIT) for those officially working in reputable organizations that do declare taxes of their employees. There is nothing like crypto taxes here. There was a process in place to regulate cryptocurrency to be able to fix appropriate taxes on cryptocurrency but seems that bill did not see the light of the day because our politicians are heavily invested in cryptocurrency using proxies. I actually feel scared seeing that some countries taxes cryptocurrency as high as 45%. It make me wonder how crypto users cope in those countries.

[Faisal2202]

This made me think about collaboration with individuals living in countries where we don't pay any taxes, to offer some insights that might help mitigate tax obligations?

There are countries that have imposed taxes which means they haven't banned the crypto but there are countries like mine that have banned the crypto so it means they didn't impose any taxes on it as they have banned it legally. But people are still into crypto and not paying taxes. My opinion in this for the country is they should make crypto legal and put some tax. That way it will be helpful for them as well.

And talking about your question, I also had the same one for a long time, but I assume in that case you have to trust other party living in another country where taxes are low or no taxes, with your money. Even if the other person is your relative or your brother, the availability of funds won't be at same level that they will be if in your possession.

I am not a legal advisor so I only shared my opinion not a legal advise thanks.

[franky1]

an idea that people can work together to achieve a way of legal tax avoidance

change the DEX software
instead of being an exchange.. call it a loan agreement (a change of GUI wording.. not of coded protocol)

heres what i mean
instead of you handing someone your coin and they hand you fiat (tax trigger)
change the WORDING
change it to 'locking up collateral for a loan' where the terms are to take the coin in exchange for a fiat loan

then when you deposit the coin into escrow(DEX) it uses the software to create a document displaying a loan agreement and settlement paperwork. and the receipt of fiat. *

the reality is still swapping coin for fiat. but the WORDING becomes a loan thats settled at delivery of fiat

remember loans are tax free.. wink wink

* i am not suggesting setting up actual loan companies with corporate charters and stupid small print that allows the fiat giver to chase the coin giver forever.. im talking about DEX software creating a receipt for the trade. that is written in very basic laymans with no clauses, a personal loan where that loan was performed and settled in the instant that the fiat was given and the coin was unlocked from the multisig/smartcontract escrow where the loan is settled and complete. no small print, no clauses.

yep a simple change from a receipt of exchange reworded to a settled loan. becomes legal paper proof of a loan that is not taxible

[Don Pedro Dinero]

This is incorrect as far as Spain is concerned. The person who has done so thinks that in Spain taxes on cryptocurrency gains are counted in the general income tax base, which, depending on the region, is around 50% at its maximum rate. This is the case for gambling winnings, for example. However, gains from cryptocurrency trading are declared as capital income, which is taxed according to the following brackets:

From 0 to 6,000 euros of capital gain, 19%. From 6,000 to 50,000 euros, 21%. More than 50,000 euros, 23%.

[Apocollapse]

The problem is how to find a trustworthy accountant? And where do you rely to ensure 100% that that accountant will not betray you or try to harm you when they know you intend to evade taxes?

I don't know whether trying to avoid taxes in your country is common and considered the right action. But I know it's against the law because the government won't like this, so once we intend to do things that may be illegal, it's best not to let a second person know. Because there is no guarantee that they will keep your secret. Not to mention whether bitcoin is legal in your country or not, because if it is illegal then your crime is even worse.

Glad to see you understand my point.

By the definition, tax avoidance is legal while tax evasion is illegal, but both of them are using a loopholes from the tax laws.

Imagine if someone make $10 Million per year by freelancing which make he get taxed on the highest income tax bracket i.e. 37%. He want to declare his income as a corporate income which make him need to pay only for 21%.

Here's the illustration:

Bob (millionaire): Hello Mr. Jack, I want to declare my personal income as corporate income, how to do this?
Jack (accountant): Mr. Bob, why you want to do that? I will report you to tax officer!