This is something my 'friend' said to me when discussing bitcoins, how do i(you) respond?
How do I respond?
That I report all my income and capital gains. Why would anyone assume that I'd be a tax cheat for using cryptocoins? You have to report income.
Do you live in the UK? Because if you do, please let me know what HMRC's response is when you report your income in Bitcoin and that they need to tax your Bitcoin (without changing it to fiat).
Because it's taxable when you change it to fiat (as company/business earnings, though if you show its offset by fiat expenditure then HMRC will have trouble trying to tax you even a small amount).
But ye, seriously, let us know how they tax you, especially if they tax you in Bitcoin.
edit: I'm all for paying taxes, just need the system to accept my taxes in btc.