Research On The Tax Law Issues Of Transactions Of Recently Emerged Virtual Currencies

In this thesis, “recently emerged virtual currencies” stand for some cryptocurrencies like “bitcoin”, which are based on P2 P technologies, can be used worldwide freely and are fully endorsed by its users. The modifier, recently emerged, depicts the differences between online game currencies, such as Q-bi, and them. Recently emerged virtual currencies were designed to try to replace the real monetary systems, with the character of decentration. However, such character of recently emerged virtual currencies leads to the incapable issues with current legal systems, including the taxation system.This thesis begins by the introduction of the necessities and feasibilities of taxations on transactions of recently emerged virtual currencies. Then, the thesis tells which types of taxations will be involved in such transactions. After that, the thesis analyses the collection and management issues. Finally, the thesis provides some improvement advices of the taxation legal system. The main stem of the thesis includes:1. Introduction. In this chapter, the thesis interprets the value of the research, tells the background information and demonstrates the specific issues discussed in the following chapters.2. Chapter one. The thesis explains the necessities and feasibilities of taxations on transactions of recently emerged virtual currencies in this chapter. To be more specific, the thesis interprets why government should levy taxations on these transactions and why it is practical to collect the taxations.3. Chapter two. In this chapter, the thesis analyses the possible taxations, including commodity taxes, income taxes and other taxes. The thesis also analyses the legal barriers on facts which may be encountered.4. Chapter three. The thesis analyses the issues of tax-collecting procedure, including jurisdictions, burdens of proof and efficiency.5. Chapter four. In the final chapter, the thesis makes some general responses towards the former mentioned issues, and provides some suggestions to improve the current legal system.