Bitcoin can make offshore unnecessary

In the world of many people who are trying to reduce the amount of taxes paid. Some or all strive to achieve size zero tax rate. To make it relatively easy - just start working with offshore zones. However, it offshore were significantly compromised after a scandal involving a Panamanian law firm Mossack Fonseca. With the company's servers, unknown persons stole during the hacker attack the largest database of thousands of offshore companies. In May this year the International Consortium of Investigative Journalists (ICIJ) has laid out the base in free access. This structured database called "Panama archive."

And this is not only a nuisance for fans of offshore companies. The fact that States in which there are able-bodied citizens who do not like it when the citizens begin to evade taxes using offshore zones. States are beginning to exert pressure on the offshore, which increases every year. For this reason, offshore companies may lose its appeal to large and medium-sized businesses. Law Professor Omri Marian University of California, Irvine believes that the replacement of the offshore companies can be cryptocurrency Bitcoin. According to him, cryptocurrency be called "superubezhischem from taxes."

Currently, governments in many countries are involved in joint programs to prevent tax crimes. In one of these programs, more than 77,000 banks around the world have begun to provide information about their clients to the US Internal Revenue Service (Internal Revenue Service, IRS). These customers have begun to disclose even the Swiss banks, previously seen as a reliable shelter for Finance anonymous contributors. Take part in this program and banks offshore countries. Thus, the places where you can preserve your capital, without revealing his own personality, all less.

And here it begins to play an important role Bitcoin. Digital wallets cryptocurrency Bitcoin are not subject to the jurisdiction of any State. Bitcoins are not taxable. No and organizations that could suddenly reveal a purse belonging to cryptocurrency any person or organization without their desire. Bitcoins are pretty handy tool payment companies and private individuals of goods and services - and all transactions are conducted in complete anonymity. The weak link can be client correspondence with a supplier of goods or services. But this problem can be solved by using a secure e-mail service.



Bitcoin accept payment not only individuals and small organizations. Major corporations like Microsoft are also working with cryptocurrency, albeit in a very small scale. Bitcoin can be used in complex commercial transactions with the involvement of agents that act as front men, who work with local currencies. Here space for financial institutions is enormous.

And now there is no mechanism of state regulation of these operations. No mechanism and transaction monitoring. Yes, some operations can be opened (as is the case with the horrible Pirate Roberts, founder of the Silk Road) but only if the author of the transaction allowed negligence, revealing his identity somewhere in the vast network. So start using Bitcoin and owners of offshore capital.



According to Trace Mayer, the greater the savings will be transferred to the Bitcoin, the stronger start to grow cryptocurrency course. By virtue of the quantitative limits the number of "digital coins" of 21 million Bitcoins translation offshore dollars in cryptocurrency may lead to an increase in the current level (about $ 600) to $ 3 million and up. A very handy tool for investment, by the way - to transfer their funds to cryptocurrency, and already in the process of translation cryptocurrency rate is gradually increasing.

However, for private companies transfer large amounts of funds in Bitcoins can be a complex problem. "Although some people believe that the accumulation of Bitcoin - a reasonable strategy that allows you to not have to pay taxes and live in peace, without fear of a tax audit, the large companies will not be able to" invest "heavily in cryptocurrency without being noticed by fiscal services", - said the lawyer Aaron Richter.

For companies that work with Bitcoin "in white", the translation of foreign currency in Bitcoin is also a particular concern, especially in the United States. The fact that the Internal Revenue Service considers cryptocurrency as property rather than currency. This means that working with Bitcoin is regulated similarly to barter. This means that in the same US organization that accepts Bitcoins and report such transactions to pay $ 500 tax, regardless of the size of the operation. Moreover, each transaction has to submit the relevant document. Everyone who receives cryptocurrency should determine its value at the time of receipt, so that by the time of submission of documents to correctly determine the profit or loss, with the filing of relevant reports.



But it in the United States. In the same Finlindii 2014 Bitcoin recognized financial services exempt from value added tax. To conduct transactions using cryptocurrency it does not require a license, and no special rules for customer identification Bitcoin-services. And in Finland, many declare their income cryptocurrency, despite the ability to save all secretly.

In Australia, the government has also decided to exclude from the list of objects Bitcoin tax base from which vnizmaetsya tax on goods and services (Goods and Services Tax, GST).

It is clear that for those companies and individuals who work with Bitcoin "in the black" this does not matter. Those "offshore funds", details of which had not yet become public domain after the leak Mossack Fonseca, sly already can be converted into Bitcoin. And I know this will be difficult, if not impossible.

Interestingly, the Bitcoin, despite the fact that the currency is not, it is becoming increasingly influenced by economic and political factors. Thus, during the trading session on June 24 rate rose immediately to $ 120, up to $ 679. The main factor - Brexit, or rather, the decision of the majority of Britons who took part in the referendum on the exit from the European Union, to withdraw from the European Union. Investors have become more actively invest in the Bitcoin, a digital currency counting the "safe haven", and the course began to grow. Similarly behave and gold, which is June 24 rose more than 4%.

Source: geektimes.ru/post/277736/