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Call it what you may but it's evasion if not declared properly...It would be really silly cashing out more than a couple of BTC in Rand after hodling for years. There are other ways... Half of the point of crypto is that it's borderless, anonymous, and nobody can take it from you without your private key.
I'm going to wait until some cryptocurrency becomes more mainstream so that I can use it directly for payments. Better than getting involved with tax issues now.
Edit: Those that bought at R300k and cashed out at R200k. If SARS taxes gains then these people should also be able to reduce their taxable income with the losses. So SARS will need to pay up.
Certainly a can of worms when seen like this. I definitely don't have an answer, more of some observations on which I hope to get some feedback.. [A disclaimer: I am completely untrained in finance, law or taxes. Doing my own taxes is an annual bellyache for me.]Capital is linked to monetary money applications:The bitcoin(Digital) pool(Abstract)=Its a picture in your mind.
You go to bitcoin with what, monetary money you dive in, ....then abstractly in your mind you "own" bitcoin.....then you sell the bitcoin and get monetary money back either more or less. If less who took it, if more from who did you took monetary money-? After all you want to increase your monetary money without doing a days job, thats really what you want to do.
Well how can crypto be capital, its abstractly riding on the back of money, if you want to buy, you use monetary money, then if you sell you get monetary money back, so you back where you came from.
Now if SARS can link crypto to monetary money properly, taken into account nothing actually constructive happened in the pool(Abstract) since you dived in and got out, now how do you get out, if more, it must be from somebody elses money in reality......Now I would like to see how SARS do this complete calculation and keep track from the whole scene A-Z(Through bitcoin)-? I think its going to be a can of worms.
Certainly a can of worms when seen like this. I definitely don't have an answer, more of some observations on which I hope to get some feedback.. [A disclaimer: I am completely untrained in finance, law or taxes. Doing my own taxes is an annual bellyache for me.]
Isn't it going to come down to how you invested and for what period? Taking Mirror Trading International as a specific example, "investors" were depositing crypto into a CIS, so any growth or loss was in terms of the investment, i.e. bitcoin. As I understand it, profit or loss would then be in bitcoin until converted (i.e. banked) as monetary money at which point SARS would calculate applicable tax in ZAR. Carrying this further, PRESUMABLY, if left in the MTI pool as btc, it doesn't attract tax at all- just like the cattle that are part of an agricultural CIS where cattle are "deposited" with a fattening operation until sold.
IMO, investing personally in crypto would categorise it (at least as currently defined) as a security - i.e. like an equity.
Articles like this is realy scaring me:
Cryptocurrency investors could be the proverbial canary in the coal mine for tax in South Africa, says Thomas Lobban, legal manager of Tax Consulting South Africa.businesstech.co.za
I've been very active in crypto the last 12 months. It's utter madness with 5+ different exchanges, hundreds of trades, 20+ wallets. How on earth am I going to please the taxman with this situation? Do anyone know of a proper crypto tax consultant that can assist to minimize tax without attracting an audit and them ruining your life ?
Haha that is one of way of looking at it. The problem is the penalties they will give you if they discover you have not declared everything.I say attract the audit.
Then let them do the work for you.
Haha that is one of way of looking at it. The problem is the penalties they will give you if they discover you have not declared everything.
One interesting topic is when are profits gained? Are crypto to crypto trades seen as gains or only once you convert to fiat ?
That sucks. Are there any laws that support this or is it their opinion on the matter? For me personally this will make a massive difference in both complexity and income/capital gains.Any conversion of any kind.
They would make their own lives and everyone else’s easier if it was only ever at base ZAR conversion time.
Its pretty certain unfortunately. If you dig back in this thread there was a big debate about itThat sucks. Are there any laws that support this or is it their opinion on the matter?