Laws and Taxes Concerning Digital Cryptocurrency And How the Government Cons Us Out of Our Money!!

The government makes taxes legal, mandatory and we must comply or we are threatened with fines and or jail time. And that is how the government controls us.

It doesn’t matter if you pay heavy taxes every time you get paid. You look at your paycheck and shake your head because of all the taxes that were taken off.

But don’t forget when you go to the cashier and look at your bill and find​ more taxes and fees. Even the air we breathe is taxed. The land we live on is taxed. We as citizens are paying taxes everywhere we go. As far as I am concerned we the people are being overtaxed​. There are also fees upon fees to pay as well. WE must obey our masters or face consequences!! It is time to open our eyes and see the truths.

Don’t get me wrong paying taxes helps millions of people. I don’t mind paying my share of taxes to help the people. But I do not like paying taxes so our government could go on expensive trips or help bring in terrorist or spend money whichever​ way they see fit to benefit themselves and their friends. They abuse their power by stealing money from us the people.

Laws and Taxes

First of all digital currency must be reported on your income tax form stated by the Canadian Revenue Agency. The Canadian government is cracking down on people and home businesses who aren’t claiming digital cryptocurrency as income. (I know it is not fair but it is the law) It is very hypocritical of the government considering digital cryptocurrency isn’t considered legal tender…More on this later.

http://www.cra-arc.gc.ca/nwsrm/fctshts/2013/m11/fs131105-eng.html

Bartering Transition.

A barter transaction occurs when you trade goods and or services with digital currency and not money. When Bitcoin hit the mainstream the CRA started cracking down on digital currency. Any bartering transaction is being taxed. Once the value of your digital currencies is exchanged to dollars you are taxed. It is a requirement to include the value of your purchases in Canadian dollars to the C.R.A. as income when you file your income taxes. Since digital currency can sometimes (to the government convenience) be used as income. Digital currency can be used to purchase physical goods and services in the real world and it could also be exchanged to the dollar and therefore considered income. When bartering takes place any losses or anything you gain is subjected to being taxed, therefore, it must be filed with your income tax return.

http://www.cra-arc.gc.ca/E/pub/tp/it490/it490-e.html

Reporting Digital Currency

Not reporting digital currencies is a serious offense and it is considered as a form as tax invasion. The penalty for tax evasion is a fine and or imprisonment. A penalty can cost up to 500,000 in fines and 2-5 years in prison. The Canadian revenue agency is watching for those people who don’t report or pay their taxes.

http://www.fintrac-canafe.gc.ca/pen/1-eng.asp

Bitcoins and Tax Bulletin

The most widely used digital currency is bitcoin. The CRA has a plan concerning bitcoin. This is the 2013 tax bulletin IT-479R -Transactions in Securities here:

http://www.craarc.gc.ca/E/pub/tp/it479r/README.html

More about Bitcoins and Taxes

As bitcoin becomes more recognizable it can be viewed as an income, taxable gain or capital. More retailers are accepting digital cryptocurrency as legal tender. How the taxman treats it: Example: If you buy​ a cup of coffee for two bitcoins it is called a taxable gain and needs to be reported to the CRA when you file your taxes. It would be considered a “Bartering Transaction” as I mentioned earlier. You are buying something that is tangible. You have Just turn your cryptocurrency to into a taxable asset and adding value by changing the currency to the dollar. Taxman gets greedy!!

If you decided to trade your Bitcoins for the dollar you then must file it with your income tax return and report any loss or gain as income or capital. To learn more about the difference between income and capital gains the CRA discusses it in Transactions in Securities IT-479R

Here: http://www.cra-arc.gc.ca/E/pub/tp/it479r/it479r-e.html

One way or another government will get the money you owe. They - the government, has the power to go into your bank account and just take it. It happened to someone I know. After paying $xxxxxx amount in taxes all year and after filing income tax the government did a “re-assessment” and suddenly this person owed the government an extra $4,000 on top of what this person was paying already!! The CRA just went into this person’s bank account and stole it!! The bank allowed this to happen!! Crooks!! They will take it out of your paycheck or freeze your bank account whatever it takes. There are lots of stories of how the government rips us off and lies and manipulates us.

Time to open your eyes and see truths about how we are being controlled and manipulated. Because let’s face it the government wants our money and​ keep us in slavery!! They lie, cheat and steal it any way​ they can. It affects all of us like the “Butterfly Effect”

Fromt thee​ ashes, ​we shall​ rise and prevail!!

Take-care everyone!! Steemster238…. out!