No tax payments on crypto trading

Tom85

New Member
Nov 23, 2023
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Hello, let's say an individual has made 7-figure income from crypto trading. But didn't pay any tax on it, because his country of residence (Kazakhstan) doesn't include trades with losses into tax calculation.
That is if he has 100 million of profit trades and 97 million of loss trades, so 3 million is a profit, however the tax authorities only use 100 million for tax calculation and tax 10% on that amount.
So the trader needs to pay 10 million of taxes, but only has 3 million. This means the individual cannot pay taxes in that country of residence. But wants to move to a more favourable jurisdiction like UAE and cash out that crypto into banks, EMIs.

Is there a risk that banks and EMIs will ask for tax payment receipts?

If he starts a business with those money, will he face questions in the futures to prove SoF/SoW and tax receipts on the money he started the business on?
 
Tom Taylor said:
Hello, let's say an individual has made 7-figure income from crypto trading. But didn't pay any tax on it, because his country of residence (Kazakhstan) doesn't include trades with losses into tax calculation.
That is if he has 100 million of profit trades and 97 million of loss trades, so 3 million is a profit, however the tax authorities only use 100 million for tax calculation and tax 10% on that amount.
So the trader needs to pay 10 million of taxes, but only has 3 million. This means the individual cannot pay taxes in that country of residence. But wants to move to a more favourable jurisdiction like UAE and cash out that crypto into banks, EMIs.

Is there a risk that banks and EMIs will ask for tax payment receipts?

If he starts a business with those money, will he face questions in the futures to prove SoF/SoW and tax receipts on the money he started the business on?
Click to expand...
Good question. If trading is legit and funds are legit I am sure you can find bank / emi for it.
UAE is an option but keep in mind that UAE is still on EU/FATF grey lists and banks don't want to open accounts for UAE residens easily. Unless they deposit 5mCHF (Switzerland).
If you have real residence in UAE, you can explain that it was not taxable in Kazakstan because it was not converted to fiat. All depend case by case.
 

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