Taxing Crypto-Asset Transactions

• Record Nr.: UNINA9910860886303321
• Autore: Parsons Shaun
• Pubbl/distr/stampa: Amsterdam : , : IBFD Publications USA, Incorporated, , 2023; ©2023
• ISBN: 9789087228033; 9789087228026
• Edizione: [1st ed.]
• Descrizione fisica: 1 online resource (413 pages)
• Collana: IBFD Doctoral ; ; v.66
• Disciplina: 343.04
• Soggetti: Cryptocurrencies - Taxation - Law and legislation; Cryptocurrencies - Law and legislation; Electronic commerce - Law and legislation; Taxation - Law and legislation
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Nota di contenuto: Cover -- IBFD Doctoral Series -- Title -- Copyright -- Acknowledgements -- Chapter 1: Introduction -- 1.1. Crypto-assets, the digitalized economy and the international tax system -- 1.2. The creation of Bitcoin -- 1.3. The global proliferation of crypto-assets -- 1.4. Overview of this book -- Chapter 2: Research Objective and Methodology -- 2.1. Research objective -- 2.2. Research paradigm -- 2.2.1. The legal research paradigm -- 2.2.1.1. Doctrinal research and comparative analysis -- 2.2.1.2. Reform-oriented research -- 2.2.2. Normative frameworks applied -- 2.2.2.1. The OECD Model -- 2.2.2.2. The UN Model Double Tax Convention between Developed and Developing Countries -- 2.2.2.3. The text of the articles of the model tax conventions -- 2.2.2.4. The principles of good tax design -- 2.3. Research methodology -- 2.3.1. Selection of the constant comparison research method -- 2.3.2. Application of the adapted constant comparison research method to this book -- 2.3.3. Use of computer-assisted qualitative data analysis software -- Chapter 3: Review of the Current State of the Taxation of Crypto-Assets -- 3.1. Introduction -- 3.2. Observations -- 3.2.1. Differences in terminology -- 3.2.2. Differences in identity or nature -- 3.2.3. Limited number of legislative ; amendments -- 3.2.4. Differences in scope of taxpayers addressed -- 3.2.5. Differences in depth and breadth of engagement -- 3.2.6. Relative consistency in VAT treatment -- 3.2.7. Consensus on lack of fiat currency status -- 3.2.8. Contrasting positions on income tax consequences in different jurisdictions -- 3.3. Conclusion -- Chapter 4: Crypto-Asset Analysis -- 4.1. Introduction -- 4.2. Proposed primary use cases -- 4.3. Identification of possible taxable events -- 4.4. Development of transaction categories -- 4.4.1. Origination -- 4.4.2. Original through fiat currency deposits.; 4.4.3. Origination through sales of crypto-asset tokens by originators -- 4.4.3.1. ICO and other market sales -- 4.4.3.2. Investor sales -- 4.4.3.3. Recapitalization (debt auction) -- 4.4.4. Origination through remuneration or incentive -- 4.4.4.1. Developer allocation -- 4.4.4.2. Remuneration and other incentives -- 4.4.4.3. Third-party developers -- 4.4.4.4. Block rewards -- 4.4.5. Origination through fortuitous issuances and receipts -- 4.4.5.1. Airdrop participation -- 4.4.5.2. Hard fork -- 4.4.6. Origination through retention -- 4.4.7. Origination transaction structuring -- 4.4.8. Summary on origination -- 4.4.9. Possible uses by post-origination acquirers -- 4.4.10. Use as a medium of exchange -- 4.4.10.1. Payment solution -- 4.4.10.2. Inter-currency transfer -- 4.4.10.3. Payment of transaction fees -- 4.4.10.4. Payment of counterparty transaction fees -- 4.4.11. Use in involuntary transfers -- 4.4.11.1. Incentivized hacking -- 4.4.11.2. Theft -- 4.4.12. Use in holding -- 4.4.12.1. Minimum account balance -- 4.4.12.2. Network usage and network delegation -- 4.4.12.3. DPoS candidacy and delegation -- 4.4.12.4. Future hard fork and airdrop participation -- 4.4.13. Use in speculation and investment -- 4.4.14. Summary on possible uses by post-acquisition acquirers -- 4.4.15. Extinction -- 4.4.16. Extinction as a medium of exchange -- 4.4.16.1. Transaction and storage fees -- 4.4.16.2. DPoS candidacy -- 4.4.17. Extinction in speculation and investment -- 4.4.17.1. Repurchases -- 4.4.17.2. Surplus auctions (supply reduction) -- 4.4.18. Extinction through redemptions -- 4.4.19. Extinction through involuntary transfers -- 4.4.19.1. Penalties -- 4.4.19.2. Non-existent accounts -- 4.4.19.3. Lost access -- 4.4.20. Summary on extinction -- 4.5. Conclusion -- Chapter 5: Tax Analysis of Identified Categories -- 5.1. Introduction.; 5.2. Origination by fiat currency deposit -- 5.2.1. Introduction -- 5.2.2. Direct tax consequences for the originator -- 5.2.3. Direct tax consequences for the transferee -- 5.3. Sale of crypto-asset tokens by originators -- 5.3.1. Introduction -- 5.3.2. Rejection of classification as issuance of financial instrument -- 5.3.2.1. Debt instrument -- 5.3.2.2. Equity instrument -- 5.3.2.3. Derivative financial instrument -- 5.3.3. Rejection of classification as royalties - OECD Model Tax Convention -- 5.3.4. Rejection of classification as royalties - UN Model Double Tax Convention -- 5.3.5. Rejection of classification as fees for technical services - UN Model Double Tax Convention -- 5.3.6. Rejection of classification as income from immovable property -- 5.3.7. Classification as business profits -- 5.3.8. Rejection of classification as prepayment for future services -- 5.3.9. Classification as sale of intangible assets -- 5.3.10. Timing of income recognition -- 5.3.10.1. Issue of tokens convertible to native tokens in an ICO -- 5.3.10.2. Issue of tokens incorporating possible future hard fork or airdrop participation -- 5.3.11. Conclusion on income from the sale of crypto-asset tokens by originators -- 5.3.12. Direct tax implications for the originator -- 5.3.13. Direct tax implication for the transferee -- 5.4. Origination as remuneration or incentive -- 5.4.1. Introduction -- 5.4.2. Allocations retained -- 5.4.3. Allocation as remuneration or incentive -- 5.4.3.1. Direct tax consequences for the originator -- ; 5.4.3.2. Direct tax consequences for the transferee - as employee -- 5.4.3.3. Direct tax consequences for the transferee - as director -- 5.4.3.4. Direct tax consequences for the transferee - as independent provider (OECD Model) -- 5.4.3.5. Direct tax consequences for the transferee - as independent provider (UN Model).; 5.4.4. Allocation to third-party developers -- 5.4.4.1. Direct tax consequences for the originator -- 5.4.4.2. Direct tax consequences for the transferee -- 5.4.5. Block rewards -- 5.4.5.1. Direct tax implications for the originator -- 5.4.5.2. Direct tax implications for the transferee -- 5.4.5.3. Proof-of-stake transaction validation -- 5.4.5.4. Delegation of participation rights -- 5.5. Fortuitous issuances and receipts -- 5.5.1. Introduction -- 5.5.2. Direct tax consequences for the originator -- 5.5.3. Direct tax consequences for the transferee -- 5.5.3.1. Hard forks -- 5.5.3.2. Airdrops -- 5.5.4. Fortuitous receipts and the determination of cost or basis -- 5.6. Retentions -- 5.6.1. Introduction -- 5.6.2. Direct tax consequences for the originator -- 5.7. Medium of exchange -- 5.7.1. Introduction -- 5.7.2. Tokens originated through fiat currency deposits -- 5.7.2.1. Direct tax consequences for the transferor -- 5.7.2.2. Direct tax consequences for the transferee -- 5.7.3. Tokens originated by all other means -- 5.7.3.1. Direct tax consequences for the transferor -- 5.7.3.2. Direct tax consequences for the transferee -- 5.8. Redemptions -- 5.8.1. Introduction -- 5.8.2. Direct tax consequences for the transferor -- 5.8.3. Direct tax consequences for the transferee -- 5.9. Holding -- 5.9.1. Introduction -- 5.9.2. Direct tax consequences for the holder/transferor -- 5.9.2.1. Network usage rights -- 5.9.2.2. Delegation of network usage rights -- 5.9.2.3. Disposal of tokens -- 5.9.3. Direct tax consequences for the transferee -- 5.10. Speculation and investment -- 5.10.1. Introduction -- 5.10.2. Tokens originated through fiat currency deposits -- 5.10.2.1. Direct tax consequences for the transferor -- 5.10.2.2. Direct tax consequences for the transferee -- 5.10.3. Tokens originated by all other means.; 5.10.3.1. Direct tax consequences for the transferor -- 5.10.3.2. Direct tax consequences for the transferee -- 5.11. Involuntary transfer -- 5.11.1. Introduction -- 5.11.2. Direct tax consequences for the transferor -- 5.11.3. Direct tax consequences for the transferee -- 5.12. Conclusion - direct tax consequences of identified transaction categories -- 5.12.1. Classification in terms of the text of the articles of the model tax conventions -- 5.12.2. Considerations for domestic legislation -- 5.12.3. Diagrammatic representation of proposed outcomes -- 5.13. Testing of proposed outcomes against exemplar -- 5.14. Observations on indirect tax consequences of crypto-asset transactions -- 5.14.1. Introduction -- 5.14.2. Origination by fiat currency deposit -- 5.14.3. Sale of crypto-asset tokens by originators -- 5.14.4. Origination as remuneration or incentive -- 5.14.5. Fortuitous issuances and receipts -- 5.14.6. Retentions -- 5.14.7. Medium of exchange -- 5.14.8. Redemptions -- 5.14.9. Holding -- 5.14.10. Speculation and investment -- 5.14.11. Involuntary transfer -- 5.14.12. Conclusion - indirect tax consequences of identified transaction categories -- Chapter 6: Tax Outcomes - Comparison with OECD 2020 Report on the Taxation of Virtual Currencies -- 6.1. Introduction -- 6.2. Direct tax - comparison of findings of this book with the OECD report -- 6.3. Indirect tax - comparison of observations of this study to OECD findings -- 6.4. Conclusion of comparison to OECD 2020 report -- Chapter 7: Jurisdictional Taxing Rights - Current Application and Future Considerations -- 7.1. Current application -- 7.1.1. Introduction -- 7.1.2. Permanent establishment (article 5) -- 7.1.3. Business profits (article 7) -- 7.1.3.1. Negotiable debt ; instruments -- 7.1.3.2. Sale of intangible assets -- 7.1.3.3. Services rendered - block rewards and transaction fees.; 7.1.3.4. Services rendered - incentive for services outside of an employment relationship.
• Sommario/riassunto: A systematic analysis of the nature of the possible taxable events arising from 25 significant crypto-assets, and the classification thereof within the model tax conventions.