Yes, it sounds complicated in theory. However, in practice, the tax entity bears the burden of proof in tax proceedings, with some exceptions. From a tax perspective, it is best not to have any KYC 😉
Discussion
Yeah, but imagine you jave some BTC in your wallet. One day you decide to sell them, just vexl them for a cash from someone.
You get cash and send them to someone else. Nothing will appear on your account to make the tax control suspicious you sold it and if so, the bitcoins are still in blockchain..
..the same if you use ATM or send them. They are still there and prooving they are under your control is nonsense. How this would be effectively done..
I think this whole fear around KYC is not valid, it is made with uncertainty of what will be ordered by law and what will be the tax control maturity, but today’s purchases will be already time-barred, that’s my opinion.
Can we still hope that our legislators will succeed after the CKMA massage in the fall? to approve the introduction of a time test and a minimum spending level, following the German model.
I only heard they were talking in Senat, did not check the detail bat of course I hope some reasonable legislation will come.
I actually strongly believe it will, more and more countries having some and Czech Rep. as an important part of the bitvoin world cannot be too far behind.. 💪🏼
As for now, cryptocurrencies are considered movable asset. The profit from sale is subject to taxation (not unrealized profit, or just buying or holding). Every fucking transfer of cryptocurrency to fiat, or another cryptocurrency, or exchange for goods or services, is considered a tax event 🤨 The state treasury is hungry. State feeling money reminds me of shark feeling the blood. I will always hope for the best but prepare for the worst at the same time. This is not fear, it is caution. This is why my KYC bitcoin holdings balance equals to zero 😉