There has been a lot of mainstream news recently regarding the taxation of cryptocurrency, the laws that govern that taxation, and the government actors aiming to ensure taxation of cryptocurrency. That said, another important thing to consider is just how possible/plausible it is that cryptocurrency will ever be as heavily and effectively taxed as more traditional forms of currency, such as the US Dollar. Hard cash has always been notoriously hard to tax as well and that has to do with the ironic fact that the 'paper trail' of hard cash is actually less easily followed than that of electronic records of traditional currency.
With currencies like Monero and ZCash, secure and difficult to trace/untraceable, people are in a position to not pay taxes period. So, it's going to become a mixture of fear, a sense of responsibility, and/or political beliefs that will lead people to pay or not pay unless the Governments of Various Countries figure out a way to get direct access to exchange records, like with the partial data release carried out by Coinbase; now, they protected the really small guys by only releasing records for people over a certain threshold (more than 20,000 USD in transactions in a year between 2013 and 2015) after some intense push back from the US Gov't, which I was glad to see, but it shows that the Gov't can reach pretty damn far to get what it wants. That said, with private, anonymous blockchains, we may see a new era of taxation, as the ability to trace with those may not be possible.
This is ESPECIALLY possible for vendors. While those who go through exchanges have a trail to some degree, if you are a vendor who accepts zcash/monero, then you're in a position where none of those transactions and payments are tracked by anyone except for you. That said, orders on your site still exist as a record and any shipping, etc., so with some detective work it could be shown that you sent items to people. That said, there would be ways around that, or at least the ability to claim that your sales were at a different price, through the use of scattered, randomized shipping dates and a number of sales varying day-by-day. So, the vendor can be empowered to overcome taxation in the scenario of accepting ZCash. It will be just as untraceable as a vendor without a license selling products on the street for hard cash.
When you say vendors can ship the items but not show the sales, how would they fix the inventory balance? If you are selling something, either you are buying as a reseller or you manufacture it.
Hi @bayuya, when I said 'sales', I was referring to something like '10% off', '20% off', etc., rather than talking about sales as in 'a record of a sold item'. What I mean is that they wouldn't have to show what amount was paid if it was paid in a traceless crypto, which would make taxation/persecution more difficult because it would be tougher to figure out the profit that would be taxed. :)
Yeah, that makes sense. But isn't it the positive side of Cryptos ? :):) The fact that anyone can transact incognito?
i don't want to pay tax.
And the battle begins, they can never give up power without a war
Governments are in a bit of a bind: on the one hand, many want to dismiss cryptos as a bubble with no substance - hoping that they will disappear. But on the other hand, they want to tax them as (legitimate) assets. Which is it?
VERY important question and it really reveals the hypocrisy that can sometimes go on in the Government!
Absolutely!
Technology Hindrance 101: Taxation
No one should ever take taxes on crypto by any way
The blockchain can either be the opposite of a centralised government or thieir greatest tool. The majority of the crypto currency community would eventually have to take a stance on what the future should be
seriously do you have to pay tax in the future?
It's currently unclear and as @cryptomage points out, the Cryptocurrency Community will need to take a stance one day to decide what the future holds for Crypto Taxation.
Taxation is theft.👍
I don't think that anything should be taxed. I think that once you buy something (House, car, TV, etc.) it should be yours and they shouldn't be able to collect taxes on it.
They shouldn't be able to tax your wages, or your capital income, or your Cryptocurrency, but they do, because everyone surrenders it to them.
Now, I think the government should decentralize it's taxing authority and mine crypto for it's own uses, but they won't, because it's easier to steal other people's money than earn their own.
governments will not stay without doing anything about it
Yeah, they'll definitely do what they can to ensure they get some of the action.
It's really not valid . I don't want to pay tax...
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there are banks worldwide against the cryptocurrency, since it puts them at a disadvantage if this goes any further, since they control the money in cash and when this cryptocurrency impulse arrives, many countries will take this as the first option to exit difficult economic situations backing it with natural wealth, so I do not see this negatively n in Venezuela have just promoted the petromoneda, backed by oil, gold and diamond, the serious concern that it fell into the hands of bad governments, greetings to...
In my opinion Cryptocurrency should not be taxed because, for example one individual launched a coin into Cryptocurrency market and so many people shown interest and bought those tokens and they get lot of profits in future, when they wanted to payout after sale of token into fiat then question is raised for tax, in my opinion everything was decentralised and the flow of market is done by people, so taxation on Cryptocurrency don't make an sense, but here we have to understand two things, the bank system includes the taxation, and to convert Crypto into fiat we need our bank so in this case question of taxation can be included, secondly taxation of Cryptocurrency can be excluded once Cryptocurrency currency becomes medium of exchange, so in my opinion we need to wait and hope that Cryptocurrency should become medium of exchange in future. Thanks for sharing and wishing you an great day. Stay blessed. 🙂
Nice post @biddle i hate tax..
government should not do such action against the crypto currency.we are totally against the tax on this issue ..thanks for awaring us the problems
great post @biddle.
thanks for sharing.
Good post,
My friends. @biddle
nice post my dear friend
great informative publication regarding cryptocurrencies
amazing informative publication my friend
We really don't know what can happen in the future but one thing is for sure governments will do anything to get what they want. I believe decentralized exchanges will be the future in continuation of this battle.