It may be the intention of the creators and users. However, in the UK at least, tax law is quite clear that you have to pay tax if you perform work in return for a "consideration", be that cash, bitcoins, donkeys, sex or music (for example).
Although the creators of laws don't always have in mind what happens online (often because they were created before the internet), most laws are broad enough that they cover new creations like bitcoins.
People & businesses have often tried to avoid paying tax by "swapping services" (e.g. accountant does developers accounts in return for a web site, and vice-versa), so the tax laws are deliberately broad to cover all "novel" non-monetary forms of payment.
Of course, you can only be found guilty of tax evasion if you are caught...
It might be interesting to see what value the taxman puts on my bedroom antics (I'd like to think my services appreciate rather than depreciate over time...)
However the taxman has a useful trick, in that she can tax based on the (monetary) market value of the thing being "bought". So if you have sex with me in return for me developing your (£xxxx worth) iOS app, and the taxman finds out (during audit : "who developed that app, and how much did you pay?") she'll WILL come knocking on my door for payment (in cash, unfortunately, the Queen doesn't accept nookie). In the UK the taxman has a long history of investigating and taxing non-monetary transactions.
Casual transactions between the public will probably slip under the radar, but try earning any significant "sex and music" as a business or self employed, and you run a reasonable risk of getting caught out.
It is also worth noting that if said music-based economy was a one in which the music was digital, most likely there would be rampant inflation due to counterfeiting.
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It may be the intention of the creators and users. However, in the UK at least, tax law is quite clear that you have to pay tax if you perform work in return for a "consideration", be that cash, bitcoins, donkeys, sex or music (for example).
Although the creators of laws don't always have in mind what happens online (often because they were created before the internet), most laws are broad enough that they cover new creations like bitcoins.
People & businesses have often tried to avoid paying tax by "swapping services" (e.g. accountant does developers accounts in return for a web site, and vice-versa), so the tax laws are deliberately broad to cover all "novel" non-monetary forms of payment.
Of course, you can only be found guilty of tax evasion if you are caught...
Laws may theoretically cover those things, but that doesn't mean they are effective. I'd like to see them try to tax a sex and music based economy.
It might be interesting to see what value the taxman puts on my bedroom antics (I'd like to think my services appreciate rather than depreciate over time...)
However the taxman has a useful trick, in that she can tax based on the (monetary) market value of the thing being "bought". So if you have sex with me in return for me developing your (£xxxx worth) iOS app, and the taxman finds out (during audit : "who developed that app, and how much did you pay?") she'll WILL come knocking on my door for payment (in cash, unfortunately, the Queen doesn't accept nookie). In the UK the taxman has a long history of investigating and taxing non-monetary transactions.
Casual transactions between the public will probably slip under the radar, but try earning any significant "sex and music" as a business or self employed, and you run a reasonable risk of getting caught out.
A sex and music based economy sounds great.
Though thinking about it, as a non-musical nerd I'd probably starve pretty quickly.
It is also worth noting that if said music-based economy was a one in which the music was digital, most likely there would be rampant inflation due to counterfeiting.