Australia launches community consultation on taxation of cryptocurrencies
Australia launches community consultation on taxation of cryptocurrencies. Australia’s government tax authority is launching a public consultation (advisory) to get feedback on tax guidelines for cryptocurrencies.
Australia is updating crypto tax guidelines
This week In a statement, the Australian Taxation Office (ATO) confirmed that it will update the cryptocurrency tax guide after accepting recommendations on how to approach certain tax events. is launching a “community advisory” to help us understand the issues.
Community advisory will address emerging issues regarding taxation of cryptocurrencies
ATO made the following statements on the subject:
The purpose of this consultation is to receive feedback on practical compliance issues arising from complying with taxation obligations regarding cryptocurrency transactions. In particular, we are dealing with practical issues that may affect taxpayers’ ability to calculate and rely on any capital gains and losses for capital gains tax (CGT).. For example; describes Bitcoin, a type of cryptocurrency. Now, to accept cryptocurrencies as a property, it is necessary to define it as an “intangible asset”.. It includes capital gains tax (CG) calculations as well as a more detailed summary of the tax treatment of cryptocurrencies used by both individuals and businesses in many cases.. More specifically, investors who earn capital gains after transferring one cryptocurrency to another will now be subject to tax obligations.
Records for each transaction must be recorded in accordance with record keeping rules
ATO , states that records for each transaction must be recorded in accordance with record keeping rules, adding:
This is where each item is accounted for and recorded separately when bought and sold with their respective Australian dollar values.
Public consultation will run until April 20
The tax office insisted on keeping records for every single crypto-to-crypto exchange transaction. In addition, the ATO stated that a record of the following details should be kept in any cryptocurrency transaction:
- Date of the crypto transaction
- The value of the cryptocurrency in Australian dollars at the time of the transaction
- Purpose and detailed information of the transaction and the recipient, even if it’s just a cryptocurrency address
Public consultation, which will last until 20 April, nearly two years after the Australian government’s first controversial promise to abolish double tax followed by an end to double taxation of transactions involving cryptocurrency.
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