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Can Bitcoin become taxable, giving the government more control over its citizens? Or, on the contrary, it will become a sort of loophole that helps its users to hide from taxes?
Below are the opinions of experts about how Bitcoin can affect certain governmental and public processes, in particular, taxation. Supporters of Bitcoin believe that bitcoin can change the above-mentioned processes for the better, while his opponents tend to find Bitcoin and the blockchain pitfalls and disadvantages.
Several definitions of Bitcoin
According to the head of Netcoins Michael Vogel Michael Vogel), many people simply don't realize all the potential of Bitcoin: "I think many people, especially if they are not familiar with Bitcoin, do not understand what Bitcoin is, depending on the jurisdiction, can have several definitions.
He says that beginners in the space Bitcoin ask myself two basic questions: "What is Bitcoin – money or commodity?" and "I have to pay tax on cryptocurrency transactions in your country?".
Vogel says: "From the point of view of value added tax and sales tax, goods and services, Bitcoin provides the opportunity for automatic payment of taxes. A large part of retailers during the month, monitor your transactions, paying sales tax at the end of the month. With smart contracts, for example, through the payment gateway of the Bitcoin sales taxes can be paid in real-time. This is very beneficial for governments, because money is very often represent a huge grey area for off-balance sheet transactions, which are difficult to tax.
All leads to proper regulation of
Another specialist, the founder of the company Wirex Lazariev Dmitry (Dmitry Lazarichev), believes that, as a fundamentally new form of money, Bitcoin has changed our worldview. He explains that currently exists, particularly in developed countries, a well-formed system of taxation where the basis for taxation Bank balances, income, expenses and exchange rates: "it is Obvious that some people are so-called non-banking sector, are dissatisfied with such control by the tax authorities and prefer to work in Unallocated cash. Can Bitcoin be useful for such non-Bank sector? Probably, Yes.
However, they are not a lot of benefit from this, so the how to track Bitcoin is much simpler than notes."
Lazarevic agree that it is the tax authorities think the way they will be able to identify recipients of the transaction of Bitcoin for the application to them of certain taxes, Bitcoin could be attractive to those seeking lower tax payments. However, once the system adjusts, to evade taxes.
Existing mechanisms are not capable to deal with the tax shelter. General Director EC District Cvijovic Nikola (Nikola Cvijovic) of the opinion in support of development development related to Bitcoin. Nicola believes that the existing traditional mechanisms for combating tax evasion is not able to perform adequately in relation to Bitcoin, as they are outdated.
He explains: "Bitcoin has no jurisdiction, he acts in the world of the Internet, it's anonymous and has no intermediaries. It's three key points for determining tax liabilities. You can adjust the exchange of cryptocurrency and trading companies, however, as the distribution of Bitcoin people will be able to live on bitcoins, and it will greatly reduce the need for exchange and further complicate the taxation process".
In conclusion, Nicola says that Bitcoin will gradually undermine the existing framework of taxation and may lead to model taxes on a voluntary basis.