Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?
-Regards
It will mainly depend on the crypto laws of your country. Some countries have laws that mandate you to state the source of your income and also pay tax from it. Other countries may not ask where the funds come from but you need to pay tax for it. While other nations are tax-free when it comes to income from crypto. In my country, the government will be asked for the source of the money if it is above $10,000. So dividing the money into lesser funds while exchanging it will make you escape such scrutiny.
When it comes to tax, it will depend on the platform you use to exchange your Bitcoin. If you use a well-established centralized exchange, you may be subjected to tax because they will report your transactions to the government. But if you use a decentralized exchange or through physical P2P like when you bought it, you may avoid tax. But if you are legally mandated to pay tax, there is no need to avoid it. Taxes are an important source of revenue for the government, and without them, basic amenities might not be provided or maintained.