crypto-currency tagged posts

Australia Eyes Bitcoin Tax Transformation

August 5, 2015 Taxation in Australia

CANBERRA – The widespread use of cryptocurrencies has taken one step closer to becoming a reality as a new calls rise for a rethink of taxation of digital coins.

In a recent report the Senate Standing Committees on Economics on Digital Currencies in Australia called for transactions completed in cryptocurrencies to be treated as normal currency for the purposes of consumption tax.

Under current regulations, the Australian Tax Office treats cryptocurrencies as intangible assets, and, as such, eligible for both consumption tax, capital gains tax, and fringe benefit tax.

The previous ruling regarding the taxation of transaction involving cryptocurrencies has reportedly already driven out some businesses from the country, as they relocated to other countries which had friendlier regulations f...

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New Clarification Issued on Crypto Currency

July 17, 2015 International Tax Cooperation

LUXEMBOURG – Users and operators using crypto-currencies have received new tax clarification regarding the sale and purchase of such currencies.

The sale and purchase of Bitcoins and other forms of crypto-currency should be exempt from VAT, according to new information detailed in an opinion document issued on July 16th by the European Union’s Court of Justice Advocate.

The matter was first raised several years ago, after an individual requested clarification from the tax authorities of Sweden regarding the tax implications of the sale and purchase of crypto-currency.

The issue caused controversy between the courts of Sweden and the tax authorities, with the question being raised to a pan-European level.

According to the new information, transactions of crypto-currency should not be l...

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Cryptocurrency Blamed for Profit Shifting in Australia

March 31, 2015 Taxation in Australia

CANBERRA – The tax system in Australia cannot adequately deal with modern cryptocurrencies, and the tax system needs to be updated to take such technologies into account.

In a discussion paper issued on March 30th the Treasury of Australia claimed that Bitcoin and other cryptocurrencies undermine the national tax system and contribute to profit shifting and erosion of the tax base.

In the paper it was specifically pointed out that “…new ways of transacting, including cryptocurrencies such as bitcoin, were not contemplated when the current tax system was designed”, and these ongoing developments may hinder a company’s ability to accurately and appropriately determine its tax obligations in a specific country, opening a significant pathway for profit shifting.

Despite pointing out ...

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Bitcoins to be Taxed Like an Asset in Australia

August 21, 2014 Taxation in Australia

CANBERRA – Bitcoins and all other forms of crypto-currencies will not be regarded as assets when used in Australia.

On August 21st the Australian Tax Office (ATO) issued a new guidance on the tax treatment of Bitcoins and other crypto-currencies, confirming that they will be regarded as an asset, and not a foreign currency.

According to the ATO, transaction carried out by an individual in which the payment is rendered with a crypto-currency shall be treated as a barter transaction, regardless of whether the transaction takes place at a physical store, or online.

Transactions with crypto-currencies will not be liable for GST or income tax, if they are not carried for business purposes.

As crypto-currencies are now considered to be an asset, any gains or losses made from a transaction invol...

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