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And I agree, avoiding paying taxes seems to go hand in hand with the ideology of many in crypto, they are going to have a nasty shock in a few years time when the IRS or HMRC come knocking on the door with a large bill to pay. Unless you managed to completely avoid ever interacting with a KYC exchange it seems inevitable in a few years they will be able to run transaction histories through software and map out peoples history, I expect one of the Big 4 will become a major player in doing this and will probably do it for free in exchange for a slice of any successful penalties recovered.
greentricky-
You're probably right. Worth pointing out that there is a 4 year and 6 year statute of limitations (as long as you're not committing direct fraud) on tax issues in the UK though. The exchange picture doesn't take losses and maintenance costs into account either so there is still a lot of auditing involved to get the full picture of somebodys crypto tax position.
HMRC are currently woefully unprepared to audit crypto people. A friend of mine was asked for receipts for his trading activities last year and when he submitted > 500k transactions in a CSV file they basically told him they believed him.
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And I agree, avoiding paying taxes seems to go hand in hand with the ideology of many in crypto
Aye, well, in the U.S. at least there's a big overlap between Crypto bros and alt-right libertarians, sovereign citizens etc. Of course, since one of the most common beliefs touted by them is that the universal adoption of BTC will get rid of the IRS, banks and central government, they may just be counting on the risk going away.
Stonehedge
itsbruce
Why do you say that?
My anecdata confirms what you said...seems to be the cultural norm to avoid paying tax on crypto profits. I think I read that less than ten Americans declared bitcoin profits over $1m in 2018.
Seems crazy really, it's quite an easy way to go to prison in the US