Tax loopholes found in UK cryptocurrencies

nRunaway Comment: Each country has its own different tax system, the tax standards are not the same. Recently, financial experts warned that there are major tax loopholes in the United Kingdom, the government will cause millions of tax losses. Because according to the British tax law, gambling income is not required to pay taxes. However, exactly how to define the proceeds of cryptocurrency investment is currently required by the government. But what is certain is that the randomness of some cryptocurrencies determines that this part of the investment income can be treated as gambling revenue. Therefore, the entire ecological tax issues need to be subdivided into studies, or rather complex processes. However, the market has experienced explosive growth in 2017, attracting more investment and at the same time enacting government rules and regulations in 2018 to keep pace.n
nTranslation: Annie_Xun
Each country has its own set of tax assessment and tax collection systems, some of which are tougher. One of the major problems that governments have to encrypt money is the difficulty of taxing the profits of the related transactions. Her Majesty’s Revenue and Customs learned a great lesson from it.n
Financial experts warn that a UK tax return could exploit a tax loophole that is free of tax on cryptocurrencies. It has been reported that this may result in millions of tax losses for the government.n
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Gambling incomen
Last year, the capacity of cryptocurrency market rose by 2000%, HMRC expected to increase the number of profit returns on the tax returns. However, the tax officer sees much less than expected because tax loopholes expose the cryptocurrency profit to non-taxable gambling income.n
HMRC spokesman said:n
n”We generally do not tax gambling income, because usually it is not classified as transaction income, but in some cases factors such as skill levels and organization levels make the activity more taxable transaction revenue.” Each case will depend on In their own case. “n
nBarrister Etienne Wong commented that British regulations could confuse amateurs with investors because they do not know who is a gambler and who belongs to a taxable investor.n
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Outdated policyn
Since 2014, the existing laws and regulations have not been updated, when the bitcoin value is still around 500 US dollars. If buying and selling cryptocurrencies is an investment, participants will have to pay capital gains tax. The basic tax rate of over £ 11,300 ($ 15,600) is 18%, while the high tax rate is 28%.n
Saffery Champness Certified Public Accountant Robert Langston said:n
n”It’s hard to know how profits from bitcoin, the mainstream cryptocurrency, can be treated as gambling revenues.It is conceivable that some cryptocurrency markets are random and therefore profits can be treated as gambling revenues.”n
nWhat is certain is that France and Germany want to further curb the cryptocurrency and these guidelines will soon be revised. If 2017 is a big bang in cryptocurrencies, then 2018 must be the time to regulate.n

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