Addressing tax evasion is on the agenda for government officials in every country of the world right now. The German Minister of Finance admitted further steps are needed to address this problem in the growing digital economy. Whether or not that means Bitcoin will be affected by future regulation, remains to be seen. But it is evident the G20 will work on some new rules soon.
Germany Takes On Tax Evasion in The Digital Economy
Ever since the Panama Papers were released, a lot of people have been wondering how much tax evasion is going in the world today. The answer to that question remains a mystery, albeit it is safe to assume it is a large-scale effort spanning the entire globe. This is causing plenty of headaches for governments all over the world.
The German Finance Minister, named Wolfgang Schaeuble, is for addressing tax evasion sooner rather than later. Doing so is much easier said than done, though, as the digital economy is only making things harder for governments and law enforcement. In fact, tracking digital payments has proven to be very difficult.
Schaeuble hopes the G20 will collaborate on coming up with new ways to address tax evasion. Although all parties involved agreed they would crack down on tax base erosion and profit sharing, it is only the first step along a very long way. However, the proposed solution is direly needed, as things have been getting out of hand lately.
The recent Apple tax evasion story, for example, could have been easily prevented by the G20. Unfortunately, it took these officials many years to even address the tax evasion topic. Keeping in mind how most of Apple’s European earnings came in digital format, it goes to show a framework to focus on the digital economy is an absolute must right now.
One possible outcome is how this scenario will affect the Bitcoin world in the coming years. Government officials have been scrutinising cryptocurrency for quite some time now, due to its so-called anonymity. More efforts are focusing on analysing the blockchain and Bitcoin transactions as of late as well. Exciting times are ahead, but it is unsure if it will be overly positive for Bitcoin users.
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