SAFEX’s usecase people don’t think about, avoiding capital gains tax

General Discussion
#21

If you have an asset that you purchase then sell later on then that is governed by capital gains tax in Australia

If you have an asset that you are earning off, either by trading (buying/selling) or residual income then that is earnings.

What you described was not buying an asset then later on selling the asset, but rather residual income. So its taxed in Australia as taxable earnings.

Obviously if you get the $$$s without declaring it then you wouldn’t be paying tax. But the question (and thus the answer) was assuming it was being declared. A “card” that is anonymous would not be declaring it would it.

#22

I thought all crypto profits are considered capital gain. Even though it’s technically a dividend, there’s no way for them to know.

All they see is you trading BTC for fiat. Whether you earned the BTC from trading, or from getting dividends then converting to BTC, it can’t be known.

TenX isn’t anonymous though.

#23

Well if you keep bringing cash from crypto then they will ask to see your figures. Your tax accountant would ask for this anyhow and tell you the bad news.

From your figures they can see what you put into crypto and if you claim capital tax the first time then that golden egg has gone. If you try to say you are splitting up the asset then there has to be documentation and the tax accountant at least needs to see it so they can prepare the tax return for you.

You don’t think the tax department just wants a “capital gains” figure on the tax return. Nope they want at least some details of purchase date and disposal date the amounts, what the asset was etc.

Maybe they allow the splitting up of the asset so you had better get your story straight from the first tax return.

And if after the 4 of 5th year you are still claiming capital gains off an asset you already claimed capital tax off then they will smell something fishy.

So if you comply with tax law and bought say 1 million safex and receive money from the “dividends” then technically that is earnings.

If you become creative and attempt to say the safex asset you bought is split up then sold a bit each year then maybe you could claim it as capital gains tax each year. You’d need a creative tax accountant to get that through the tax man.

But in doing so then the tax man might smell something fishy and ask for a desk audit first where you have to provide (show the tax man) the details of the purchase and where the asset is being held (addresses) and if that does not line up with what you have been claiming then expect fines.

Disclaimer again if you use an anonymous method of getting your money back out then none of the above applies. The above is just a gloss over of the tax situation.

#26

im very sorry for that

1 Like
#27

Moderators can solve disputes and buyers can leave feedback as well as take a survey afterward … Have sellers provide tracking to buyers maybe? Anon portal
What does everyone think?

A Survey at the end of the transaction can help us know what works for clients/customers. The clients/customers can complete the survey whenever it is convenient for them…

#28

Couldn’t we wire in a “base capital” each year, which we will use for the next year to withdraw along with the dividends.

This way we’re combining the dividend gains & the “base capital” we added last year. We can then withdraw this & report as long term capital gain.

We can repeat this each year, and we’ll have the base capital to back up our earnings.

Essentially coinbase will see $20k go in 1-1-2017, and $40k go out in 1-1-2018 ($20k of which is from SAFEX dividends)

I’m deleting all these BTW in a couple days.

#29

This is why I will be using a very good tax accountant who has experience in this already. Not yet looked for one since I have not cashed out anything yet.

It will be worth the expense in the long run and not having a desk or full blown tax audit. You are now talking about things I cannot talk about since I am unsure.