A Tax Regulatory Framework for Cryptographic Assets

10 Pages Posted: 2 Oct 2023 Last revised: 22 Jan 2024

See all articles by Doron Narotzki

Doron Narotzki

University of Akron - The George W. Daverio School of Accountancy

Tamir Shanan

College of Management

Date Written: 2024

Abstract

We propose to develop a novel regulatory framework for taxing cryptographic assets. Most tax systems apply the realization principle for taxing cryptographic assets even though such a deferral is regressive, increases capital inequality, decreases governmental tax receipts, and incentivizes taxpayers not to sell or exchange their cryptographic assets and avoid being taxed on any such capital appreciation along with concealing such assets since the taxpayer is not subject to any reporting obligations. The application of the realization principle is clearly unjustifiable in this context, and in order to depart from it, a novel tax framework has to be adopted.

Keywords: Cryptographic Assets, Tax, regulation

Suggested Citation

Narotzki, Doron and Shanan, Tamir, A Tax Regulatory Framework for Cryptographic Assets ( 2024). Available at SSRN: https://ssrn.com/abstract=4589670 or http://dx.doi.org/10.2139/ssrn.4589670

Doron Narotzki (Contact Author)

University of Akron - The George W. Daverio School of Accountancy ( email )

259 S. Broadway Akron
Akron, OH 44325-4802
United States

Tamir Shanan

College of Management ( email )

7 Yitzhak Rabin Boulevard
P. O. Box 9141
Rishon LeZion, 75190
Israel

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