The next big thing since the internet (is here): Bitcoin and its tax treatment in the Philippines

Clicks: 2
ID: 286455
2018
Free PDF
Article Quality & Performance Metrics
Overall Quality
Not rated
Combines reader engagement with the AI quality analysis. This article has not been analysed, so there is no overall score — reader engagement is measured and shown alongside.
AI Quality Assessment
Not analyzed
Readership in this journal
Popular

Ranked #1,893 of 3,757 articles by views in Malay Journal

Most read Least read

Bar heights use a square-root scale. Only the 120 most-read articles are drawn; the journal has 3,757 in total.

Mint this article as an NFT
Not yet minted

Create a permanent, verifiable on-chain record of this article on the Scimatic Network. The NFT is held in your Journament account, and you can withdraw it to your own wallet at any time.

5 SUSD one-off · no wallet required
Sign in to mint
Abstract
In 2008, the global financial crisis sparked fear amongst investors of all races and genders. That was when the faith of people in financial institutions started to end, and their search for alternative means of savings and investments had begun. Right after the financial crisis, bitcoin, both a virtual currency and a decentralized, peer-to-peer network, emerged as an alternative to the current financial system. Bitcoin is an intangible asset that exists only on the Internet in the form of computer code. It is not supported by any government or central bank, but it is being used as a medium of exchange across the globe. When used as payment for goods or services, there is an exchange of things of value, hence, transacting through bitcoin has inevitable tax consequences. This study seeks to answer two main questions: 1) Are general tax principles, provided by the National Internal Revenue Code (NIRC) applicable to transactions involving bitcoin? 2) If yes, should the Bureau of Internal Revenue (BIRC) impose taxes on the parties to a bitcoin transaction? To answer these questions, the Researcher used critical examination and evaluative exploration of theses, academic journals, government reports and news on virtual currencies, with particular focus on bitcoin and taxation, vis-à-vis pertinent laws, revenue regulations and jurisprudence. Through an econometric approach, this study settles that bitcoin is neither e-money, legal tender or fiat currency in the Philippines. Rather, it is a virtual currency used as a medium of exchange, for delivery of financial services, particularly for payments and remittances. In applying the pillars of a sound tax system (fiscal adequacy and administrative feasibility), alongside the general principles of Philippine tax laws, the Researcher recommends that the Bureau of Internal Revenue (BIR) issues a Revenue Regulation that shall serve as guidance for taxpayers, explaining how the NIRC and other related laws apply to transactions involving virtual currency, such as bitcoin.
Reference Key
persistent_1760658633_68f184c9d3b6d Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Pillena, GC Joel Gertrude P.
Journal Malay Journal
Year 2018
DOI
DOI not found
URL
https://animorepository.dlsu.edu.ph/etd_masteral/7237
Keywords Keywords not found

Citations

No citations found. To add a citation, contact the admin at info@scimatic.org

Comments

No comments yet. Be the first to comment on this article.