South African Revenue Service Develops Strong Appetite For Crypto Taxation
For crypto traders, Hodlers or whatever form of crypto on have been exposed to for crypto gains, even airdrops I suppose, it is better to start looking at crypto tax laws in each country and make sure one is not caught on the wrong side. On can lose everything and possibly get locked up.
How crazy it is to spend time searching and investing in crypto with government waiting for a cut of your profit. Can one get away with airdrops though, can one get away with the earnings from Hive, considering HIVE tokens are tokens earned for socializing on the chain? Anyway try explaining that to the tax man.
Based on our work with clients, it’s clear that a major misconception is that a ‘tax event’ only occurs when the cryptocurrency is withdrawn and converted into legal tender, but that’s not true. If a trade is made between, say, Bitcoin and Ethereum, the notional profits of that transaction would also be taxable
Source
One needs to also understand the conditions surrounding what's liable to be taxed. My understanding from the above quote is. Say I had BAT which I bought on a dip and sold high for profit and then bought CUB for staking without even cashing out in fiat I have to pay tax on the profit I made for buy BAT low and selling high. Hopefully I interpreted that correctly and if that's correct, crypto traders are in a whole lot of shit here based on this condition considering trades made from tokens to tokens moving profits to other altcoins.
In addition, SARS is investing heavily in its IT capabilities which will enable it to analyse financial and transaction data more effectively, and identify transactions in and out of crypto platforms.
Source
While there are other things needing attention and "investing heavily" upon these guys are bent on strengthening every forces possible to have a cut of your crypto gains. Well you better familiarize yourself with your regions crypto laws and start paying which applies to myself too.
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I love this bro
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Just the way I feel about Hive bro, I have a belief we are up to something great here which is entirely up to us.
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I suppose with the shrinking tax base, SARS has to explore every possible avenue to keep money flowing into the pockets of the political elite.
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They will always find ways of milking more out of you all in the name of tax. And you get to question what are this tax revenues being utilized for.
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People must start looking at crypto from variety of angles, not only cost purchasing token against possible profit made. I don't keep track like one should because it is crazy, they are trying to relate to buying futures or on stock markets making gains, yes banks do with huge systems tracking and tracing movements.
Equation must take in time, office space used, internet lines, data paid, never hand them anything on a plate. How much did you outlay in time learning? How much data do you spend to keep your Hive going? How much did the equipment cost you use to make said money? Never... over my dead body, they can pick my bones then.... like the vultures they are.
I think while they are busy investing heavily on ways to track crypto transactions, the blockchain, cryptocurrency world isn't sleeping but continuously evolving. We might be having an onramp and offramp crypto in the near future and that will be when their grip over us is lost.
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They have direct access into your banking (yes they can take what you owe them), everything is inter-connected, a fast buck desperately needed to be made after squandering a lot, SARS will not care about small entrepreneurs, hence I say list your expenses, even space used in the home.
Time we get smarter too, as they get hungrier.
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They cannot take blood from a stone, years of this ongoing drama with them wagging fingers, I don't read news much anymore it only makes one angry. Use both time and finance wisely, you only live once.
I guess if you have been exposed to the crypto space you will begin to see things differently.
Listening to news is of less interest to me now compare to the past. All they feed us in the news are bunch of lies which no longer have my interest
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Scare tactic central, media sings the same tune with leaked information, we know technology will change many things down the tracks, for now eish....
For now we just have to hang there and tolerate our close friends and family still stuck in the world where they are fed lies and manipulated.
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None in my family accept my 'crypto crazy' as they call it, when it comes to everything else we debate good reason before voting, sadly many never look deeper. Some smaller parties run on good ethics, especially some who pulled away from large contingent.
My fiancee is of the none crypto type, she wouldn't even check my Hive blog 😃 conversations with her always reflects how stuck she is on "normal" way of things.
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Both my sons do gaming yet not interested? Sucks since I really have tried to entice them.
Hahaha we one own crazy weird crypto world I guess until they see the reward.
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Case of no risk no reward, either way I think we on the right path...
I think so too am loving the journey so far.
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Yes you’re correct in how THEY assume blockchain works but in practice going to extract all that data is not worth your time nor there’s! The vast majority of crypto tax will still be cashing out into fiat of which there will be plenty for them to get a piece of
They are working with all the local exchanges and banks to track those on ramps and off ramps but once you hit chains or go off that chain it’s a different story
This is why I don’t trade I buy and hodl you can’t tax me on appreciation if I didn’t sell!
This is where we dictate and a nightmare to them and with DeFi happening most on decentralized chains the control still lies with cryptocurrency users. Biggest hurdle at the moment remains cashing out where they are waiting eagerly.
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I don't like that appetite!!
Hahahha me neither!