# Taxation `kaal:entity:taxation` **Status.** derived This node is assembled mechanically from the 10 claims that carry the concept tag `taxation`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 10 claims across 8 works, 2016 to 2026. **2016** - [2714974-016](https://wulfkaal.github.io/claims/2714974-016) [mechanism/argued] -- The long term capital gains treatment of carried interest matters more to private equity, venture capital, and real estate fund advisers than to hedge fund advisers, because those funds hold portfolio company stock longer on average. > The LTCG tax benefits are crucial to the returns of private equity, venture capital, and real estate investment funds advisers whose funds hold portfolio company stock longer on average than do hedge funds. Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974 - [2714974-017](https://wulfkaal.github.io/claims/2714974-017) [predictive/argued] -- If Congress changes the tax treatment of carried interest, returns to hedge fund advisers and their investors are likely to fall markedly and the popularity of hedge funds will be severely tested. > Should Congress change the tax treatment of hedge fund managers, the returns to hedge fund advisers and their investors are likely to fall markedly. Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974 **2017** - [2939127-032](https://wulfkaal.github.io/claims/2939127-032) [condition/argued] -- Open legal questions about the DAO, including which regime governs token issuance, minority token holder protection, taxation, the binding force of DAO smart contracts, ownership of intellectual property, and conflict resolution, must be answered before future DAO structures can operate seamlessly. > Open legal issues pertaining to the DAO need to be addressed before future DAO setups can operate seamlessly. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2998033-016](https://wulfkaal.github.io/claims/2998033-016) [empirical/evidenced] -- The IRS position that virtual currency is taxed as property is expressly limited to convertible virtual currency, which leaves the tax treatment of crypto limited partnership interests unaddressed. > However, the IRS was very specific about limiting its current position to transactions involving "convertible virtual currency," leaving the tax treatment of crypto-limited partnership interests unaddressed. Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033 - [3002908-013](https://wulfkaal.github.io/claims/3002908-013) [failure/argued] *(failure mode)* -- The IRS confined its virtual currency position to transactions in convertible virtual currency, which leaves the tax treatment of crypto limited partnership interests unaddressed. > However, the IRS was very specific about limiting its current position to transactions involving "convertible virtual currency," leaving the tax treatment of crypto-limited partnership interests unaddressed. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 **2018** - [3117224-031](https://wulfkaal.github.io/claims/3117224-031) [empirical/evidenced] -- Israel taxes cryptocurrency as property: profits are subject to capital gains tax at rates between twenty and twenty-five percent, and individuals mining or trading cryptocurrencies in connection with businesses must also pay a seventeen percent value-added tax. > cryptocurrencies will be subject to capital gains tax at rates between twenty percent and twenty-five percent, while individuals mining or trading cryptocurrencies in connection with businesses must pay a seventeen percent value-added tax (VAT) in addition to capital gains tax. Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224 - [3117224-032](https://wulfkaal.github.io/claims/3117224-032) [empirical/evidenced] -- Poland's Ministry of Finance interpretation states that selling or exchanging cryptocurrency for traditional currency, or exchanging one cryptocurrency for another, could create a VAT tax obligation. > the sale and exchange of cryptocurrencies into traditional currency and vice versa, as well as the exchange of one cryptocurrency for another, could create a VAT tax obligation. Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224 **2020** - [3709041-012](https://wulfkaal.github.io/claims/3709041-012) [design/argued] -- Redistribution in decentralism is grounded in ownership rights in each person's individuality derived data that creates economic value, rather than in taxation or market determined income. > decentralism's redistribution is based on ownership rights in persons' individuality-derived data that creates economic value. Kaal, Blockchain Technology for Good (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3709041 **2021** - [3808873-021](https://wulfkaal.github.io/claims/3808873-021) [mechanism/argued] *(failure mode)* -- Governments will try to tax increasing distributed value creation wherever they can assert national jurisdiction, and exercising that assumed authority inhibits distributed value creation. > Naturally, governments will try to tax increasing distributed value creation if they can assert national jurisdiction. Exercising this assumed authority inhibits distributed value creation. Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873 **2026** - [6421319-035](https://wulfkaal.github.io/claims/6421319-035) [failure/argued] *(failure mode)* -- Redistribution after the fact is likely to fail, because by the time it becomes politically feasible those controlling the AI economy may be powerful enough to evade meaningful taxation, a pattern history has repeated from the Medici to the robber barons to contemporary tech monopolists. > By the time redistribution becomes politically feasible, those controlling the AI economy may be powerful enough to evade meaningful taxation. Wulf A. Kaal, The Collapse of Scarcity Economics (2026). SSRN: https://ssrn.com/abstract=6421319 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/taxation.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.