I'm impressed. I'm also skeptical whether you'll be able to stay under the radar once your "rent income" increases but keep us posted. Good luck OP.
Thanks!
Well this is actually not supposed to be something that only works until you're 'under the radar'. So let's fastforward to next year when I'm claiming 90k worth of income and let's say I become being 'on the radar'. The authority becomes interested in investigating the circumstances:
I have already posted this above, and I do understand it's not the most elegant thing to quote myself
, but I'd like to put this out there one more time for the sake of the emphasys it deserves:'Let's put us in their (the tax authority's) prospective, and let's look at something as straightforward as a rent extremely closely. What can you check?
1. Can the examined person (you) prove he really rented a storage room? - Yes, he can show a wire transfer from his/her own bank account to the storage room providers account as proof that you can check.
2. Could the person sublet the storage room for profit? - Yes, if the storage room provider doesn't forbid subletting. If you as the taxman are being extremely thorough you contact the storage room provider and ask if subletting is allowed, and to further back nr.1 if they can confirm that they have the examined person as a client. The answer is yes for both.
3. Can you as the taxman find anything that would indicate that the income that was declared to be received as rent was in fact received for something else in reality? - No you can't, as you can't trace where bitcoin or crypto transfers originate from. Plus everything else that needs to be in place for the declaration to be true is in place (the storage room is really rented by the examined person and it is possible to sublet for profit).
There isn't anything for you as the tax man to further investigate or documents you can request when we are talking about a private person being examined.'
So you became being 'on the radar',
then they investigated,
then they arrived at the conclusion that they still have nothing to do with this income (because it is ONLY subject to tax in the UAE), and have no facts based on witch they could claim in court this transaction hasn't happened in reality.
Done.