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Canada Revenue Agency To Tax BitCoin Transactions
First time accepted submitter semilemon writes "The Canada Revenue Agency has started paying attention to BitCoin transactions, as it says users will have to pay tax on all transactions using the currency. From the article, "The CRA told the CBC there are two separate tax rules that apply to the electronic currency, depending on whether they are used as money to buy things or if they were merely bought and sold for speculative purposes. "Barter transaction rules apply where BitCoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email. In this situation, that means whatever you've received in exchange for your $1 worth of vegetables must be documented as a taxable gain of at least $1 somewhere. When it comes to trading BitCoins for profit, the tax man says there are tax implications there, too. "When BitCoins are bought or sold like a commodity, any resulting gains or losses could be income or capital for the taxpayer depending on the specific facts," ruled the CRA."
The fact is that American government is about 80 times the size that it should be, Canadian government is probably 60 times the size that it should be, basically those government should be cut to about 2-4% of their current size and the economies would strive.
But this also means disassembling the existing welfare state (I mean completely dismantling it, kicking people off their government pensions, off government provided health care, shutting down all gov't 'insured' loans, getting rid of public education, public transit, public utilities, public everything.
BTW, for those who don't know it, USA is the LARGEST tax haven in the world. That's right, USA will not collect taxes for foreign governments on money that belongs to foreigners in USA and that is made in USA (capital gains, dividends, etc.) If CRA wants to tax Canadian Bitcoin savers, Canadians can just use USA exchanges.
You can't handle the truth.