Crypto tax thoughts.

Driving home from the gym last night, my mind (as it often does lately) wandered over to steemit, steem and cryptocurrency.

And it sparked another thought. One that's on a lot of peoples mind lately I'm sure.

I was thinking about how us Dutch people will be taxed for our Cryptoholdings. They will be taxed as property and not as income.

That means, we will have to pay 30% tax over the notional yield of our property. There's some complex math involved (it IS taxes after all, why make it easy) but it'll come down to something like 30% over anything from 2 to 5% of our total crypto's worth (well and other property of course).

The height of that property is determined by what you had on Januari 1st. of your taxyear.

Now what got me thinking is how on earth are they going to check what any person holds in crypto. They will have to take your good word for it, because unlike income and savings in FIAT, there'll be NO government organ or company or whatever handing over your holdings to the taxman.

See, here in the Netherlands, our tax return papers are already pre-filled with your yearly income (which they get from employers) and savings (which they get from banks) etc etc. But again, not so for crytpo.

I can see how they might query Exchanges (which more and more require your passport for verification). Those might even be legally obliged to divulge what's in your account, but most if not all of us have at least SOME holdings in wallets on their computer (or steemit.com for instance)

How is taxman EVER going to know the total worth of THAT if they don't even know where to look for it. That's basically my train of thought.

Meanwhile, after reading up on the topic, it's appears to be a matter of 'you're legally obliged' to declare your property/capital. You might think and/or follow my train of thought, but when you sell your crypto to FIAT, the taxman might (will) see that as inexplicable income and might start an audit with all sorts of sanctions when they discover you've been hodling out on them.

Still not sure how this could ever work for a 100% ... but then again, I'm no economics wonder.
Just average Joe with a random brainfart while driving home from the gym.

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Full STEEM ahead my fellow Steemians - @eqko

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