Question about Paypal earnings

Hello everyone!

Here is my situation. I do some dev work online for which I got ~$5000 so far on PayPal. They required me to verify my account which I did so all is well, I use it to buy stuff online. I have a bank account linked to my PayPal account, but I have never sent back any money to it from PayPal, I used it only to pay when I had no separate money on PayPal. There is no multiple account, no tricks, just a single legit Paypal account.

Now my question is simple, I don't know if I am allowed to ask these kind of things or not, but here it goes. Does Paypal report you to local tax authorities about your balance? I guess they could do it because they had me verify my identity. I live in eastern Europe, Hungary. I'd rather just avoid paying taxes if they are quiet about it. I have really no idea how PayPal works in these regards, I guess they are required to collect some data about you if you go over a limit.

Any1 here can enlighten me about this please?

Also, I could use Skrill or Payoneer, or Neteller, or anything... Is any of these maybe better suited for me?

Thanks a lot for your time

Not that I have ever seen. I have gotten letters in the mail about my balance that "should be given to your tax consultant", which I did. They encourage you to file your taxes but it is not a requirement.

Paypal wont just show it to the taxman. But if you ever get an investigation against you by whoever your tax authority is then they can request information i guess.

Thanks! And what about Neteller and Skrill? I heard about some poker players who get their money on Neteller and they evade tax like that. Is it the same story as Paypal, I mean if they go over a limit they need to verify themselves?

In future you have option to use 100% verified PP stealth account with different name.
This way you avoid any responsibility to pay taxes. Of course I have to remind you that it is illegal to do so.