Luxembourg, Cayman Islands, Isle of Man and Jersey are known tax havens. Now we can add Steemit to the list...
I was having a great old chat with a friend of mine who just happens to be an accountant today.
I'm sure depending upon the country and the jurisdiction you live in, will depend on how Steemit is seen in the eyes of the law. But more likely than not, there is no classification for what exactly Steem or Steemit is was the conclusion of my accountant friend.
A quick disclaimer...this is not a post to give you advice by any means. It's just to express the point and raise the question.
The discussions we had today centred around the following:
TAX FREE INCOME
Rewards generated on Steemit as we speak are tax free. Although they are logged and are traceable, true identity of every account holder really remains unknown. They also can be exchanged for bitcoin and bitcoin can be exchanged for cash no matter where you are in the world. Therefore, you can avoid paying taxes as a result of your contribution to this platform.
MONEY LAUNDERING
Not only that, you can technically charge up and launder money through to yourself by loading up a single account and transferring along the way. Utilising the platform, dirty cash can be cleaned through Steem. But this can be said of any cryptocurrency really.
TAX FREE HAVEN
It also acts as a tax free haven, as any interest so to speak that is generated on your account is not subject to the same scrutiny your bank accounts come under.
Therefore you can easily park funds here and it grow exponentially over time, unlike in a bank where your money sits and is documented.
Here it is like a bank with no corporate responsibility.
Steemit is a whole new world of interesting, it will have the law makers perplexed as to just exactly how to classify it.
I know a number of countries are still trying to work out how to classify bitcoin and if/how to tax profits generated from it. As for Steem, I'm sure it will cause them many sleepless nights.
#steemit #steem #money #crypto-news #bitcoin