e$: The Book-Entry/Certificate Distinction

[Michael Froomkin]

On Wed, 23 Aug 1995, Alan Penny wrote:
[snip]> 
> This also has the interesting feature of avoiding all taxes. Until you
> "cash out" your account you would not have to pay taxes, if you never
> need cash out your account, you never need to pay taxes. I suspect that
> our friendly governments would try to "correct" this "problem" in the
> long run if they can.
> 
Nyet.  Any time you barter A for B, even electronically, you have a 
taxable event.  All you have done in the above is describe a system in 
which it is harder to detect the taxable event.

A. Michael Froomkin        | +1 (305) 284-4285; +1 (305) 284-6506 (fax)
Associate Professor of Law | mfroomki at umiami.ir.miami.edu
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