Spending funds instead of withdrawing to avoid taxes

[thedirtyteller]

If someone receives money on his private PayPal account for selling goods and services, and he decides to spend it instead of withdrawing it, will the tax authorities in your country ever find out? If so, when and how?

1-100 USD per month.
100-1000 USD per month.
1000-10 000 USD per month.
10 000 and upward per month.

 

[meze99]

As far as I remember paypal doesn't ask you for your tax id number, so tax authorities are unlikely to learn about your paypal transactions.

 

[thedirtyteller]

As far as I remember paypal doesn't ask you for your tax id number, so tax authorities are unlikely to learn about your paypal transactions.

If that's the case, how come not more people doing this?

 

[meze99]

1) Paypal can block you funds for 180 days any moment. In some cases even forever.
2) Many customers don't want to use paypal
3) Most people don't do tax evasion

 

[jafo]

3) Most people don't do tax evasion

Source: Over 1K IRS agents being ‘willfully delinquent’ on their tax returns is ‘inexcusable’: Sen. Ernst

 

[meze99]

In a way you just confirmed it - most people don't work as IRS agents and don't know how to do it. The same goes for huge corporations like Amazon with dozens of best international tax advisers which use every trick in the book to pay zero taxes while small and medium businesses pay high taxes because legal tax optimisation schemes come at too high cost for them.

 

[jafo]

don't know how to do it.

I went to "war" a few times against the "gang members". Although NOT tax-related. What I learned in +40 years, that is LOST on everyone, is that there are NO *mutes in prison! Not a single one!

*mutes = Muteness or mutism.