I wonder how Germany expects to be able to tax this? It's very hard to audit someone's collection of BTC wallets. Will this only be to require companies to collect VAT for BTC transactions, or will it also include, say, income tax when you're being paid in BTC?
A company pays for work done in BTC. They want to put that into their books as an expense to reduce their tax burden. The other party that did the work is now on record and can be taxed also.
And it is taxed even if it's off record; not declaring the income and successfully keeping it off record doesn't mean "not taxable", it means "tax fraud".
If you manage to hide that income for some time but it comes to light a few years later - BAM, you owe the back taxes in triple+interest.
Of course you have (and already had, always) to pay income tax when being paid in BTC! The "money" definition doesn't matter for that, if you've been paid in any other nonmonatery goods or benefits, it's always been taxable.
Taxing that works - if the volume is sufficient to arise suspicion, then seize the relevant documents and computers, find evidence and charge you for tax fraud.
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I wonder how Germany expects to be able to tax this? It's very hard to audit someone's collection of BTC wallets. Will this only be to require companies to collect VAT for BTC transactions, or will it also include, say, income tax when you're being paid in BTC?
A company pays for work done in BTC. They want to put that into their books as an expense to reduce their tax burden. The other party that did the work is now on record and can be taxed also.
And it is taxed even if it's off record; not declaring the income and successfully keeping it off record doesn't mean "not taxable", it means "tax fraud".
If you manage to hide that income for some time but it comes to light a few years later - BAM, you owe the back taxes in triple+interest.
I don't really see why it would be any different from taxing a cash currency?
its actually easier! there's no block chain for paper money
Of course you have (and already had, always) to pay income tax when being paid in BTC! The "money" definition doesn't matter for that, if you've been paid in any other nonmonatery goods or benefits, it's always been taxable.
Taxing that works - if the volume is sufficient to arise suspicion, then seize the relevant documents and computers, find evidence and charge you for tax fraud.
It is harder to audit paper money, but they are able to tax that...