IMF work paper: difficulties in taxing cryptocurrencies and the potential for income

Von Krypto News Österreich

IWF-Arbeitspapier untersucht die Komplexität der Besteuerung von Kryptowährungen Die Zeitung berichtet darüber, welche Schwierigkeiten sich aus der Pseudonymisierung von Kryptowährungsbehörden ergeben und wie dies die Verwaltung und Umsetzung von Einkommensteuergesetzen beeinträchtigen kann. Ein neues Arbeitspapier des Internationalen Währungsfonds (IWF) befasst sich mit der Komplexität der Besteuerung von Kryptowährungen und hebt dabei mehrere Faktoren hervor, die zu dieser Komplexität beitragen. Ein Hauptproblem besteht in der „Halbanonymität“ von Kryptowährungen, die es schwierig macht, Transaktionen nachzuvollziehen und Gewinne korrekt zu versteuern. Des Weiteren haben Kryptowährungen sowohl die Merkmale eines Vermögensgegenstandes als auch einer Zahlungsmethode. Dies führt zu zusätzlichen Herausforderungen bei der Besteuerung. Ein …
IMF work paper examines the complexity of taxing cryptocurrencies The newspaper reports what difficulties arise from the pseudonymization of cryptocurrency authorities and how this can affect the management and implementation of income tax laws. A new working paper of the International Monetary Fund (IMF) deals with the complexity of the taxation of cryptocurrencies and highlights several factors that contribute to this complexity. A main problem is the "half anonymity" of cryptocurrencies that make it difficult to understand transactions and tax profits correctly. Furthermore, cryptocurrencies have both the characteristics of an asset and a payment method. This leads to additional challenges in taxation. A … (Symbolbild/KNAT)

iWF working paper examines the complexity of taxing cryptocurrencies

The newspaper reports what difficulties arise from the pseudonymization of cryptocurrency authorities and how this can affect the administration and implementation of income tax laws. A new working paper of the International Monetary Fund (IMF) deals with the complexity of the taxation of cryptocurrencies and highlights several factors that contribute to this complexity.

A main problem consists in the "half anonymity" of cryptocurrencies that make it difficult to understand transactions and tax profits correctly. Furthermore, cryptocurrencies have both the characteristics of an asset and a payment method. This leads to additional challenges in taxation.

Another aspect is that the current income tax authorities are not designed for the innovation of blockchain technology. As a result, different types of cryptocurrencies are treated differently, which further complicates the situation.

The lack of agreement on the correct taxation of cryptocurrencies also contributes to the difficulties. There is no clear consensus whether cryptocurrencies should be taxed as profits, financing instruments or even as a betting operation. This ambiguity makes it difficult for the tax authorities to develop clear guidelines and administrative systems.

Another problem is the lack of logical and pragmatic evidence of transactions in the crypto area, although theoretically there is a considerable amount of purchase data. This underlines the need for further research studies in order to develop and update effective control plans in the cryptocurrency area.

Especially in aspiring economic zones, the challenges in taxation of cryptocurrencies are worrying, since these areas often have limited technical opportunities for successful taxation. Even if cryptocurrencies are confiscated, the implementation of such seizures is unclear.

The research study also indicates relevant cases of income tax evasion in the cryptocurrency sector. However, it is emphasized that the main motivation for such illegal activities is to make illegally achieved profits appear legal, possibly for tax reasons.

According to improved taxation measures in the cryptocurrency range between 10 and $ 323 billion in the cryptocurrency could generate additional income, depending on the drought and recognized. The application of recommended security measures in income tax could bring in around $ 15.8 billion. Alternatively, potential income between $ 47.4 and $ 118.5 billion could be achieved if an VAT is collected on all cryptocurrency transactions.

The IMF recommends the introduction of improved reporting obligations for cryptocurrency miners as the first measure to strengthen the income tax.

Finally, it can be said that the taxation of cryptocurrencies is a major challenge due to their unique properties and the lack of clear framework conditions. Further efforts and research are required to find solutions and to ensure successful taxation.