I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.
Well for me bitcoin cannot be subjected to tax. Because it is very impossible to tax persons who are using or earning bitcoins. Simply because transactions are untraceable. It would take so many times and extensive planning and study to just tax our earnings from bitcoin. The only thing maybe the government can do is to regulate bitcoin.
bitcoin would be appropriate to be taxed by the government, if a country's government could formalize the existence of bitcoin. as we know most countries still can not formalize the bitcoin used as a means of payment transactions for fear the population is more comfortable using payment transactions using bitcoin. if the government is able to legalize the bitcoin most likely every bitcoin user, his income and expenditure will be imposed with tax deductions from the government.
