Presuming that you've got them in return for doing some dev work (the subject of this article), when the tax man audits the company that you did the work for, and asks them to explain where they got the website/app/software developed when they don't have inhouse developers one of two things will happen. Either they won't give the tax man your details and invite the rath of the tax man, or more likely they will give them your details and how much was paid. You see, even if your customer keeps the transactions completely off the books, there is usually something to show for it, particularly if we are talking any kind of volume, and the tax man is very very used to looking for those kinds of signs.
> and no tax to be paid
There is tax to be paid, legally speaking, its just a question of whether or not you get caught for not paying it. Just like the tax man investigates people selling stuff on ebay, when sites like localbitcoins become more popular they will start investigating them as well. You may just find that the person you're meeting to sell your bitcoins to turns out to be a tax investigator.
AS with all criminal enterprises (a harsh label, but that's what tax avoidance is), you may get away with it. Or you may not.
however looking at it from an international perspective, if i am paid in BTC by someone operating out of the US (for example) and they tell the US taxman that they paid someone in the EU for the work then the US taxman is not coming looking for me.
as for meeting someone who turns out to be a tax investigator so what, localbitcoins.com and sites like it require no registration or even adding any personal details, unless I give the taxman my details he will not know who I am. Plus localbitcoins.com is not even necessary any forum could be used to arrange to meet and trade/sell BTC.
I guess what i am saying i that BTC allows people to avoid the taxman entirely. In your example of a company buying services, they are unlikely to use a BTC site to hire a feelancer, preferring to stay within the remit of fiat currencies and the taxman, however for individuals it is much more appropriate and much less interesting to the taxman,.
Indeed, for private individual - individual transactions, particularly low value transactions, you are most unlikely to be caught as there is much less interest to the taxman. To which end, you can just use cash.
This article however is about business/freelance type work. And at least here in the UK, the taxman is just as interested in individuals doing business deals as it is with corps. If you think that you don't run the risk of getting caught, bear in mind that anonymous off-the-books cash transactions, including international deals, have been happening since time immemorial, and the taxman regularly collars offenders.
With regards to localbitcoin, the moment you hand over your btc in return for their cash, (here in the UK at least) a taxable transaction has occurred and they can compel (via arrest if necessary) you to provide your identity.
If you avoid public forums and launder your btc with only trusted friends/contacts, you may get away with it. But you're limiting your market and reducing the exchange rate you'll get.
And if you start pulling in larger amounts and converting that to cash successfully anonymously, you start having the same problems drug dealers do when laundering their money that came from untaxed sources. Here in the UK, you won't be able to use bank accounts as money laundering regs mean larger deposits have to be explained and notified, and of course bank records are just that, records. Likewise if you go to purchase that shiny new car in cash, money laundering regs kick in again.
So for small amounts you will probably get away with it, but the taxman doesn't care too much about those, and such transactions already exist as "cash-in-hand" work without btc. Bigger transactions are just as problematic as cash, unless everything you want to buy is available from sellers who accept btc and delete their shipping records (or provide the product digitally).
> and no tax to be paid
There is tax to be paid, legally speaking, its just a question of whether or not you get caught for not paying it. Just like the tax man investigates people selling stuff on ebay, when sites like localbitcoins become more popular they will start investigating them as well. You may just find that the person you're meeting to sell your bitcoins to turns out to be a tax investigator.
AS with all criminal enterprises (a harsh label, but that's what tax avoidance is), you may get away with it. Or you may not.