Future safety of bitcoin tax report and clearance

[FortuneFollower]

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.

Loopholes will be found as countermeasures to that, though, I agree, that we need to think now about it to not regret about this situation later.

[HajiBagi]

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?

Why are you going to let the government officials or the police to know all about you? We know that sometimes we have to provide the information about the source of income but I don’t think it is necessary for me to tell a police officer about my bitcoin and other important things about me, there are somethings that should remain private and never let anyone know about it except your family members.

No one can be trusted because most government officials are criminals, most especially the corrupt police, they can do anything just to have their own percentage from you, for me, I don’t think the information is necessary unless you want them to know that you have a bitcoin or want to expose yourself, no any government official that will know you have bitcoin if you don’t tell them, so let be careful with what we do when we found ourselves in that situation.

[Ucy]

Well, you have the right to be private, unless maybe you did something really bad or terrible. But if you are not criminal, you can choose to not reveal where you keep your money if you don't feel safe revealing it. They could only have the right to compel you to reveal it if you did something wrong or probably for crime investigation that's strongly linked to you. Besides, after the investigation, and you are indeed innocent, you can always move your coins to other addresses.

So, if you are asked about your sources of income, and Bitcoin is one of them, you  just write Bitcoin. If they want you to be specific, you tell them exactly how you make your money through Bitcoin (you don't need to reveal where you hide your money to anyone). And if this is taxable because they provide the facilities or services you have not paid for, then they could tax you when you become profitable and withdraw to your bank account. Or a built in tax system that uses zkp-like tech could have the list of your online Bitcoin businesses and do the deduction when you are in profits, without revealing your funds/addresses or private info to anyone.

By the way, this is why it's important that bitcoiners are free/bright people who are qualified to be on their own and capable of defending themselves against fiat world that may want to take advantage of them

[Rgram]

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?

That’s a good one and something not really considered at this time given that, many of us and depending on our jurisdiction haven’t being subjected to these reports. There are no parastatals or agency that doesn’t have some rogued officials within its ranks and even though the agency might be generally marked as good, these elements do exist and can use your information to some evil conspiracy and mastermind.
Given how Bitcoin can be a one way traffic and how it takes just a key to have it in the custody of someone else and the means to making certain chain links disrupted, it raises real questions if, we are doing it right with these reports.