I think smart law enforcement will come to blockchain too. And if we are all smart, we will help them understand how they can "tax" things. And simply make clear distinction between what is a "business" with "profit" and what is "testing" or "under the limit" of what is to be considered, by each law/country as, "business activity". If normal posting on steemit can be considered an activity for which there is profit, then we are all doomed. And trying to force decentralized platforms to pay is irrelevant to singular governments, because they will never be able to control outside of the country.
Either way, smart governments will understand where enforcement should be best applied and the balance between enforcing and "advising". I think we will see better results when crypto gets "simplified" to the point, there is no more need for me compile, for me to trust. At that point, things will be easier to deal along laws.
On another plane, I am sure all the community want is to be able to use the platform, technology and experiment (for many of it), and not to run AWAY from taxes. Making it simple to use and comply with laws is a very important achievement for any blockchain business or tool. So, if this stays as responsibility of the person using it, instead of the product being created, it will be bad in my view for all the community of that specific blockchain technology.
I wish I did not had to worry... about anything too. But unfortunately, its something still very far away... maybe.
hi @forykw
thank you for this amazing comment. so much value in it!
do you mind telling me what do you mean? It it in our interests to help them?
I think that as long as we're to small to matters we're safe. But there is many of those who made huge amount of SBD (bot owners like @@@jerrybanfield) and they should be scared of taxes.
I agree. That's the thing. I want to pay taxes and I want to know how and when. Learning 5 years down the road that I need to pay taxes for something that wasn't regulated is my biggest nightmare.
Cheers,
Piotr
Yes indeed. I do not mean with it that everything should be taxed. Just that we should help understand the technology so that the right balance into the economy can be developed, which in some cases, translate into taxes.
Yes indeed. And that relates a bit to what I was trying to say. If we stay on the platform and show that we are using it as part of an activity (business activity) then for me it makes sense to tax that activity. As long (and here is where things complicate) there is explicit possibility to separate activity from "non-activity" using the same technology. Aka, if you use STEEMit for both, then you face a serious amount of complex iterations, which relate to trying to justify what is or not activity. Usually, people just create a new login to make things easier. But it is when we want to resolve the Identity problem that these multiple accounts go multiple directions, I call them "the ways" of the blockchain. And this makes law very hard to apply. They will get it eventually, but it will be a battle.
Keep in mind that if what YOU currently pay in taxes (if you do) and whatever you would need to "regularize" does not make sense to "bill" because basically, it would just give more cost than actually bring together any benefit, then you might be ok. It's when the difference between those two actually make a huge difference that you should worry about. At least that's the idea I have from experience.
The idea is not to NOT disclose, but if to bring reports with more than 100 crypto per year with hundreds more of transacted values is going to be something that translates to 10$ of taxes in a year... I don't see any benefit in justifying that, if for example the total amount of tax paid was around > 10000$... I mean.. the cost of validating everything, even if having automatisms, which do not exist yet, would cost governments a LOT more than 10$. Therefore, it is up to our good judgement to understand what to report and pay taxes on it. Later, it will probably become easier and hopefully, I would not even have to do anything, the government would have the necessary tools to actually ask for the taxes via blockchain, where I would only have to sign with a transaction. That would be awesome! But the implications of implementing that, are just ridiculous at the moment.
Therefore, I would recommend hanging in there... and make your call. But be just with yourself and ask them what to do, if you really wanna play with it for profit. Otherwise, play around. This is a great tech to learn from and play with. I enjoy trying stuff... breaking... etc.
Cheers
I love to see how responsive you are @forykw
That's what happend in Poland once our gov + tax office decided that everyone need to pay 1% from each transactions on any exchange. Luckily they terminated that law within few days after being flooded with tons of raports.
Thank you again for such an amazing comment
Yours
Piotr
Yep. =) Happy for responding, when I can. It is not always like that, but I try my best. Especially when I see value for others in doing it and also in learning from it.
And all I hope is for Governments to keep that mindset of "being effective" and not just some feudalistic psychedelic enforcers that don't even understand the effects of what they approve/legislate.
now Im blushing @forykw :)
thx for reply. and have a great weekend