I was wondering as there seems to be a lot of people making money purely through HYIP alone, what anyone is doing with regard to taxes. As my understanding of most HYIP is that they are 99% ponzi, and as ponzis are illegal what do you tell the tax man or the accountant?

Just trying to get some sort of idea as to what everyone else is doing before going to my accountant and making a of myself

I am from the UK but answers from other countries would also be helpfull


koko

Hi, I'm from the Philippines. I didn't really grasp what my accountant said but basically, money made through online (internet) investments are tax-exempt in our country.

Don't quote me though

You lucky

Maybe i should move to the Philippines


koko

I read somewhere that HYIP are to be considered by accountants as "gambles", like winning money in the casino. As for as the legality of it, I guess if you invest in something ilegal then you're in trouble. It is next to impossible to know if a HYIP is a ponzi until it folds, unless you have insider information.

This thread has good information on the subject:
http://www.moneymakergroup.com/forums.html#entry178438

It is always good to pay your taxes no matter where the source of money is.

YUP.

The hard thing for me is that I pay taxes on ALL my earnings. But, I dont dare report my losses. I lost $2800 in July with HYIPs and GPT sites and I am not treating it as a loss.

Its going to now take me twice as long to get that money back with the whole tax issue

Thanks everyone for you answers. The whole legal thing is really tricky, as most HYIP are ponzi's and are therefore illegal so it's knowing what to tellyour accountant.

I agree:
HYIP are to be considered by accountants as "gambles

so, it is tax free

in what country ? In the US, we have to pay taxes on our winnings.

In the UK gambling is tax free.

In the UK it's only the money you bring in which is classed as earnings so if you have money tied up in HYIP then you aren't earning until you actually withdraw some and transfer it to your account in the UK.

I think the above applies to most tax systems, as you can't be considered to be earning whilst money is invested offshore.

is that global tax included

I think to most members earning with HYIP is tax free.Right?

To solve the whole problem, I just dump my HYIP earnings into something substantial like Studiotraffic.

Then I don't have to worry about dodgy categories for reporting $$ from HYIP's...since I'm getting paid to surf instead.

IMO Paid surfing is the same thing as HYIPs, but with a little effort included

Um, they last a little longer as well...

Hi all ...nice to meet you. i´m new here and living in germany. Sorry for my bad englisch.
I reading this interesting discusson about tax paying and hyip....please is anyone here who had made that much money with hyip that he has to pay tax? ( if he lives in a land where he has to pay tax)
All hyip´s i we think here in germany are riskfull because they are living only a vew month and then they are gone with all your money.
??? right ? or we investing in the wrong hyip ´s all the timé.
nice sunday to all.regards Kiver

Income is income however it is up to you to report it

So, does it means i still dont need to pay tax if i have withdrawn to my bank account and fully re-deposit it back to a forex/stock broker before April?

eh, ST is going downhill lately!

I agree

This is one question I have been mulling over.

I have been making a fair bit from HYIPs but all the money stays offshore in Stormpay and I access it using a Stormpay Debit Card. I don't actually have a bank account here in France. Just money offshore in investments and in Stormpay. Do I have to declareit since the money is not made or held here at all?

jafar: So you right now have an offshore bank account setup to stormpay and to retrieve the money into your possession from your country you use the stormpay debit card and remove it from an ATM your saying correct?

What offshore bank account are you using? Any information you can help me with as to setting this up?

Looks good to me.
I think you're right.
Taxes should always be paid, just in case.
You wouldn't want to do anything that may be legal (tax evasion), no matter what.

Regards,
HP