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ATO Releases Bitcoin Guidance

ABN Latest News

Recently the ATO released some guidance on the tax treatment of Bitcoins and other “crypto-currencies. Some of the major points are as follows:

  • There should be no income tax or GST implications for individuals if they are not in business or carry on an enterprise and they pay for goods or services in bitcoin.
  • Any capital gain on the disposal of bitcoin will be disregarded if the bitcoin is used to purchase goods or services for private consumption and the cost of the bitcoin is $10,000 or less.
  • Individuals who use bitcoin as an investment may be subject to capital gains tax when they dispose of it.
  • Business must record the value of bitcoin transactions as a part of their ordinary income. They must charge GST when they supply bitcoin and may be subject to GST when receiving bitcoin in return for goods and services.
  • There may be fringe benefit tax consequences for businesses using bitcoin to pay employee salaries.

If you or your clients have had anything to do with bitcoin or other crypto-currencies, the full taxation ramifications should be assessed as quickly as possible.

Category
ABN
Published
09 Sep 2014
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