More and more countries, like Chile or India, are trying to tax their citizen for the crypto they hold.
Please don't pay taxes on your coins.
You really don't need it, unless you are totally ignorant.
It's simple: they cannot prove you have the coins on your PC/phone , so you don't have nothing to pay taxes on, as far as they know.
It's just their attempt to trick the ignorants that don't know about that
Even if they look for your wallet on your PC/phone ,
your wallet data is not accessible to them because it's encrypted with password ( uhm.... have you set the password protection on your wallet... right? ).
Of course you are not going to give them the wallet password.
Oh.. they tell you that you withdrawn the coins from an exchange, so that's the proof you have the coins?
Just say that it was an hacker that stole your coins from the exchange, not you.
You got robbed, and you don't have to pay taxes on the money that was stolen from you, right?
P.S. for the geeks: use Veracrypt
I think maybe you think that tax officials are too naive. It's true that I have never acknowledged paying taxes at that income which you haven't even realized into your bank. But once you have realized it then I think there is no use or way hiding it they will be caught today or later. You can look for some tax avoidance using some expenses but complete concealment of Income can be very dangerous as it can attract fees and penalties. The hacker excuse however was quite lame government demands proof of such things and proof is a FIR to the local police which won't be available.Please don't pay taxes on your coins.
You really don't need it, unless you are totally ignorant.
It's simple: they cannot prove you have the coins on your PC/phone , so you don't have nothing to pay taxes on, as far as they know.
It's just their attempt to trick the ignorants that don't know about that
Even if they look for your wallet on your PC/phone ,
your wallet data is not accessible to them because it's encrypted with password ( uhm.... have you set the password protection on your wallet... right?
).Of course you are not going to give them the wallet password.
Oh.. they tell you that you withdrawn the coins from an exchange, so that's the proof you have the coins?
Just say that it was an hacker that stole your coins from the exchange, not you.
You got robbed, and you don't have to pay taxes on the money that was stolen from you, right?
P.S. for the geeks: use Veracrypt