Australia has launched a community consultation to gather practical issues experienced when complying with cryptocurrency tax obligations.
“We have previously published cryptocurrency advice but increased interest has resulted in queries from the community about how to approach specific tax events. […]We’re eager to hear your feedback about cryptocurrency and its tax implications as the technology may impact how business operates in the future,” The Australian Tax Office (ATO) said.
The updates point to the fact that capital receipts from exchanging one cryptocurrency to another are subject to tax liabilities. The guidance is general in nature and focusses on the tax consequences for taxpayers.
It reveals some rules of cryptocurrency transactions, such as the date of the transactions, the value of the cryptocurrency in Australian dollars at the time of the transaction, what the transaction was for and who the other party was
“In particular, we are interested in any practical issues that may impact on taxpayers’ abilities to calculate and substantial any capital gains and losses for (cryptocurrency) capital gains tax (CGT) purposes,” the agency explained on its website.
Last year Australian lawmakers passed legislation that applies the GST treatment to cryptocurrencies in the same manner as foreign currencies.