CRYPTOCURRENCIES: FROM TAX COMPETENCES TO THE FUNDAMENTAL RIGHT TO NOT PAY ABUSIVE TAXES

Abstract

This study aims to examine the problem of taxation of cryptocurrencies, as there is a great difficulty of categorizing its legal nature, in view of the lack of authority responsible for its regulation. In 2018, Brazil and Switzerland signed the Convention to Eliminate Double Taxation on Income Taxes and Prevent Tax Evasion and Avoidance by introducing limits on the tax powers of the contracting countries, eliminating or minimizing the possibilities of double taxation of income, This could put an end to foreign transfer discussions using virtual currencies. That way, ending the discussion of ‘who should I pay for?’. It is, therefore, an article that seeks to analyze the complex relationship between the power-duty to tax and the appropriate model for charging on virtual currency transactions. The subject raises many questions because it is not possible to resort to the ordinary and complementary laws before the constitutional confrontation of the subject has been exhausted. The taxpayer should not be exposed to the powers of the state without any observance of the principle of legality, not even pay abusive taxes on the operation with virtual currencies, the nature of which remains legally undefined.