At a certain level of complexity even the tax authorities can't decide what is legal and what isn't and they will basically try legal action against you to see what the court decides. I've pursued an official statement from my country's tax authority about a tax issue I had pertaining paying taxes when you do business in several countries at once, and after months of hassling the tax office through a lawyer we finally got a letter saying that "we cannot see anything wrong with what you are trying to do, but this letter is not binding, it is neither a promise nor a guarantee that we will never take any legal action against you if we decide differently at any point in the future. This is all advice that we will be providing on the matter".

Guess what happened - a year later they decided it wasn't ok, and of course the letter they wrote was worth as much as toilet paper in the court. It took 5 more years and a very decent amount of money to fight against it and finally get them to admit they were wrong and there is no issue. But of course no one will give you 5 years of not being able to run your business back.

Dunno, in my case the court agreed that my actions were "perfectly legal".

Care to share the details?

Nothing exciting, the government felt that imaginary internet money should not be treated like other similar assets. Luckily the courts disagreed in the end.

With tax laws being so complicated these disputes are everyday stuff for anyone engaged in any "unusual" activities.

Heh, the amount of people that think crypto is an asset class that would be taxed differently than any other asset class is astounding. Sounds like your tax jurisdiction was in that group (!).

Though there are a bunch of unanswered questions in a lot of jurisdictions: How do you treat a fork?

Is it income? A dividend? A stock split? A spinoff? Some of these require the originator to file paperwork, and no crypto chain could possibly do that.

And what initial value? $0? Day1 trading value?