Document Type
Article
Publication Date
8-3-2017
Abstract
Digital tokens have been used to raise substantial amounts of money. But little attention has been paid to the tax consequences surrounding their issuance and sale. There are significant potential tax liabilities lurking in the use of digital tokens. But, because of the anonymity inherent in the blockchain structures used for the issuance of tokens and payments for them, there is a significant question as to whether those tax liabilities will ever be collected.
Keywords
Taxation, securities, corporate finance, digital tokens, bitcoins, block chain, e-commerce, bearer instruments, virtual currencies, taxation, DAO token, tax treatment of tokens, tokens as equity, issuer obligations
Publication Title
Tax Notes
Repository Citation
Shakow, David J., "The Tax Treatment of Tokens: What Does It Betoken?" (2017). All Faculty Scholarship. 1942.
https://scholarship.law.upenn.edu/faculty_scholarship/1942
Included in
Computer Law Commons, Corporate Finance Commons, E-Commerce Commons, Internet Law Commons, Law and Economics Commons, Law and Society Commons, Other Computer Engineering Commons, Science and Technology Law Commons, Science and Technology Studies Commons, Securities Law Commons, Taxation-Federal Commons, Technology and Innovation Commons
Publication Citation
156 Tax Notes 1387 (September 11, 2017).