Future safety of bitcoin tax report and clearance

[Oshosondy]

We do not know today, but tomorrow can be worse. The criminals are not just the bad people alone, they can be a well known people in the government office like the police and others. If you are reporting your tax, there are government officials that will sign it and stamp it to clear you.

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for. What if the government official is a bad person and carry out a wrench attack on you or supplying criminals with people's bitcoin information?

[Aanuoluwatofunmi]

Make use of Bitcoin but don't allow its application be a reason to losing your privacy which you should have maintained, the only ideal way is to make a payment in bitcoin, but when it requires that you go for further information regarding KYC all because you're making payment in bitcoin, then it is better that you exempt yourself and instead go back to make your tax payment in fiat, while you continue with other buying and selling with Bitcoin independently.

[noorman0]

I'm even used to seeing blatant forms of repression by law enforcement. Someone can be jailed for a fabricated crime, while they can rummage through everything in your safe.
Government officials don't actually need to resort to a $5 wrench attack to get your bitcoins here. They can simply claim your coins need to be seized for inspection, etc.

[sokani]

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for.

I've not filed a tax report, but since the government wants to know how much you make, so they can tax you, I think you will be required to list all your sources of income.

What if the government official is a bad person and carry out a wrench attack on you or supplying criminals with people's bitcoin information?

As I understand, the government goes through rigorous background checks before hiring personnel as tax officers. But as we know, governments can't be 100% accurate in their checks, and even staff with good records can become compromised after receiving money to sell taxpayers' info to scammers. Hence, it's not a question of "what if," but I think it's a possibility that a tax officer can collude with criminals to sell bitcoin millionaires info, like their phone number and address for a possible wrench attack.

[Easteregg69]

Its reported as income. Not as bitcoin.

You buy etf if you want anything about bitcoin mentioned in the papers.

Listen man. You just report how much you made when your done. No wild accusations.

[SeriouslyGiveaway]

I'm even used to seeing blatant forms of repression by law enforcement. Someone can be jailed for a fabricated crime, while they can rummage through everything in your safe.
Government officials don't actually need to resort to a $5 wrench attack to get your bitcoins here. They can simply claim your coins need to be seized for inspection, etc.

Governments can do things they want especially in nations where power are too centralized and laws can be applied very arbitrarily.

It's only a little fortunate that with Bitcoin, if you store it in your non custodial wallet, governments can not freeze your coins, it's big advantage of Bitcoin than altcoins and stablecoins. Of course they are able to seize your coins but they have to arrest you first.

Avoid wrench attacks from governments, I don't know how to deal with governments but generally such wrench attacks come from crime too.
The bitcoiner’s guide to physical security.
How to protect your bitcoin from $5 wrench attacks.
A bitcoiner’s guide to organized crime.
Can duress wallets stop physical attacks on your bitcoin?

[Easteregg69]

Dunno if you can deduct your gambling habbits. Check it out.

[Joy_learns_crypto]

We do not know today, but tomorrow can be worse. The criminals are not just the bad people alone, they can be a well known people in the government office like the police and others. If you are reporting your tax, there are government officials that will sign it and stamp it to clear you.

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for. What if the government official is a bad person and carry out a wrench attack on you or supplying criminals with people's bitcoin information?

Also what if the government official is not actually a bad person but negligent with the bitcoin information you already provided to them and criminals get to know those very sensitive information.
I think if you get wrench attack and it can be proven that is was from someone from the government that pulled the attack or provided the information directly or indirectly you can sue.

[Davidvictorson]

Its reported as income. Not as bitcoin.

You buy etf if you want anything about bitcoin mentioned in the papers.

Listen man. You just report how much you made when your done. No wild accusations.

Will it only be reported as income alone? Won’t the individual also fill the source of the income?

[Bastketsrus]

We do not know today, but tomorrow can be worse. The criminals are not just the bad people alone, they can be a well known people in the government office like the police and others. If you are reporting your tax, there are government officials that will sign it and stamp it to clear you.

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for. What if the government official is a bad person and carry out a wrench attack on you or supplying criminals with people's bitcoin information?

You’re right, risk isn’t only from criminals outside, sometimes it can come from inside the system too. That’s why privacy and proper self custody are so important with Bitcoin. The less you expose about your holdings, even when using things like Bitcoin betting platforms, the safer you are overall.

[sleepfirefly]

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for.

I've not filed a tax report, but since the government wants to know how much you make, so they can tax you, I think you will be required to list all your sources of income.

honestly, not to condone illegal activity but it is very easy to not file tax reports. rich people do it all the time. even government officials do it too. the only tax report that is unavoidable is if you are traditionally employed because the tax gets reduced automatically. but i doubt everyone pays all their taxes in due time.

[Easteregg69]

Its reported as income. Not as bitcoin.

You buy etf if you want anything about bitcoin mentioned in the papers.

Listen man. You just report how much you made when your done. No wild accusations.

Will it only be reported as income alone? Won’t the individual also fill the source of the income?

Not when i do it. It just an extra field for local currency. If you get a call for a number check. I don't know.. Not seen yet.

It's on top of the pension. Extra income. Give something back like. Sum. It says nothing about crypto or bitcoin. Reporting. We talk about the same thing.

You think a plumber would report a toilet to tax? ETF's would be reported by the broker. Directly to tax.

[nakamura12]

Its reported as income. Not as bitcoin.

You buy etf if you want anything about bitcoin mentioned in the papers.

Listen man. You just report how much you made when your done. No wild accusations.

It's only natural since they also want to earn like through tax for example that's why it is reported as income since you can really earn money when investing on bitcoin. If a person is not employed then I don't think it will be reported as income since the person isn't employed in a company. In my country, there's no tax when having a small grocery to sell to neighbors (which is called sari-sari store). If the government really wants to get tax from people earning in bitcoin then there's no choice but to report it as another source of income.

[Zaguru12]

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for. What if the government official is a bad person and carry out a wrench attack on you or supplying criminals with people's bitcoin information?

Possibly not the government will give them information but rather it will be them actually who got there way in and got those information most especially if it’s on their database, we have heard cases like this where bank account managers were behind the attacks or similar situations. This is the major reason why bitcoin or its users are bent on privacy to help curtail this things.

Wanted to raise this question is bitcoin going to be registered as bitcoin or under some sort of names like current Assets like inventories or fixed assets like tangible.

[EFS]

This is definitely a serious problem. It's even more dangerous, especially for people living in countries where the rule of law doesn't work well and democracy is weak. Government officials who gain access to this sensitive information could abuse their position and put people with large amounts of crypto at risk. In today's world where privacy is very important, disclosing all your assets brings a major risk. Luckily I don't have assets big enough to worry about this. But it's a problem that seriously needs to be thought about.

[_act_]

Its reported as income. Not as bitcoin.

You buy etf if you want anything about bitcoin mentioned in the papers.

Listen man. You just report how much you made when your done. No wild accusations.

What are you talking about? This thread is not about accusations, it is about how government officials can know people that are into crypto and use the opportunity to attack them or sell their information to bad people.

According to AI that I used, in the tax report, sources of income can be included:

Most countries with a developed, comprehensive income tax system require citizens and residents to list their various sources of income in their annual tax report. This practice ensures that all forms of income—including employment, investments, rentals, and foreign earnings—are correctly taxed.

So your post is somehow not relevant to what this topic is all about.

[hmbdofficial]

We do not know today, but tomorrow can be worse. The criminals are not just the bad people alone, they can be a well known people in the government office like the police and others. If you are reporting your tax, there are government officials that will sign it and stamp it to clear you.

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for. What if the government official is a bad person and carry out a wrench attack on you or supplying criminals with people's bitcoin information?

During such applications/clearance, would  earning from bitcoin  be regarded as a source of on income? in my thought it will be regarded as an asset and such information might not be needed for proof of funds. only if you want to expose your self that’s when you start telling the immigration officer you even have a bitcoin. Bitcoin should be a private affair to you yourself.

[m2017]

We do not know today, but tomorrow can be worse. The criminals are not just the bad people alone, they can be a well known people in the government office like the police and others. If you are reporting your tax, there are government officials that will sign it and stamp it to clear you.

If you are providing information in the tax report or clearance, it is very possible that all your source of income can be requested for. What if the government official is a bad person and carry out a wrench attack on you or supplying criminals with people's bitcoin information?

Government employees in many countries can be corrupt. Data leaks, including personal data, are common. Therefore, there can be no trust in providing data (for example, tax returns) related to the availability of your bitcoin. Many are against the KYC procedure, for example, when using exchangers. But how is providing information about your bitcoins to government (tax) authorities any better than this? Nothing. Because outsiders will know everything about you (even more than with the KYC procedure): your balance, your name, your place of residence, etc. These are potential risks for bitcoiners, and you can be at risk both from a mass data leak and in a targeted manner, i.e., only information about you will be shared with criminals. This is especially true in corrupt countries. Are you really ready to trust such a regulator (employees of government agencies)?