Transacting with cryptocurrency Australian Taxation Office

This subreddit is for users of Bitcoin in Australia.

This subreddit is for users of Bitcoin in Australia.
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ATO: "Bitcoin is not legally recognised as a unit of account". Germany: "Bitcoin has been recognized by the German Finance Ministry as a unit of account"

The latest ATO draft rulings, specially TD 2014/D11 considers that Bitcoin is not foreign currency as no sovereign recognizes Bitcoin as a unit of account, or a form of payment.
ATO Claim: As Bitcoin is not legally recognised as a unit of account and form of payment by the laws of any other sovereign country it is not 'foreign currency' for the purposes of Division 775 of the ITAA 1997.
The implications of this are that Australian Bitcoin exchanges must charge 10% GST on the purchase of BTC. Yes, you must pay $550 AUD to buy BTC trading at $500.
This is ruling is factually incorrect. In 2013, Germany's Finance Ministry has recognized Bitcoin as a 'unit of account' and a form of payment. http://www.cnbc.com/id/100971898
Germany Finance Ministry: Virtual currency bitcoin has been recognized by the German Finance Ministry as a "unit of account", meaning it is can be used for tax and trading purposes in the country.
As such, Bitcoin should be considered foreign currency, and not be considered supply for GST purchases.
submitted by goldcakes to Bitcoin [link] [comments]

AUSTRALIAN ATO BITCOIN/CRYPTO

I'm a citizen of Australia but non resident for tax. If I buy crypto on an exchange outside of Australia and resell crypto in Australia for a higher price. What would be the tax obligations ?
submitted by robinsonben99 to crypto_currency [link] [comments]

ATO Bitcoin Ruling: The Australian Govt needs to respond with new GST legislation

TL;DR: The ATO GST Ruling is against the spirit of the GST legislation, I believe it can only be fixed by legislation changes.
I've spent some time reviewing the ATO Draft Rulings and the reddit commentary. The implications of double GST is most concerning as it is contrary the original design intent of GST law. Here's some detail
The GST Explanatory Memorandum, explains that the GST is a tax on consumers
GST is borne by consumers ...
GST is effectively borne by consumers when they acquire anything to consume.
It further explains:
3.24 Input tax credits are intended to offset the GST included in the price you paid for an acquisition if the acquisition is for use in your enterprise. If you are going to use a thing in your enterprise, for example by selling it on to someone else, GST will be included in that sale. Therefore, to avoid double taxing that thing, you receive a credit for the GST included in the price you paid for the thing. You therefore have a creditable purpose if you acquire a thing for the purpose of your enterprise.
However, the The ATO Draft Ruling implies that a business accepting bitcoin as a payment from a consumer will be subject to double taxation when they dispose of the bitcoin. This occurs because businesses will be unable to claim an input tax credit on the supply of the bitcoin from the consumer to the business.
The ATO has previously recognised prevention of double taxation is a key design feature. As explained in MT 2010/1:
  1. The GST Act presumes GST is ultimately borne by end consumers. A key design feature of the GST system to ensure this occurs and to avoid double taxation is to generally allow a corresponding input tax credit to a recipient of a supply in business to business transactions. The GST Act envisages a degree of symmetry between the GST payable and the input tax credit which may be claimed in business to business transactions.
Provisions for input tax credits are also available for transactions between unregistered entities (consumers) and registered entities in the form of the following legislation, again for the purpose of avoiding double taxation. However, I don't believe this provision applies to bitcoin.
I've read the ATO rulings, and they make sense in the application of the law. However, I believe there is clearly a legislative design flaw when the current GST legislation is applied to bitcoin. The Australian government needs to respond with new legislation to ensure that bitcoin can operate within the spirit of the original GST bill, which always intended to avoid double taxation.
submitted by unchainedcitizen to Bitcoin [link] [comments]

ATO's Bitcoin ruling is 'out of step with reality' Read more: http://www.itnews.com.au/News/396229,atos-bitcoin-ruling-is-out-of-step-with-reality.aspx#ixzz3EOYvuEyI

http://www.itnews.com.au/News/396229,atos-bitcoin-ruling-is-out-of-step-with-reality.aspx

http://www.muchbitcoin.org/ - Bitcoin Education http://www.muchbitcoin.org/ - Bitcoin Education http://www.muchbitcoin.org/ - Bitcoin Education http://www.muchbitcoin.org/ - Bitcoin Education
submitted by MuchBitcoin to MuchBitcoin [link] [comments]

Bitcoin - Buying, selling and the ATO

Hi all.
I purchased some BTC a few months ago, but with the downturn recently I may have spent some of it (not in exchange for $$, but for products and services).
My question is: How do I declare this to the ATO, if some of the transactions were done here in Australia and other transactions were made in the US and other countries, such as UK and some of the EU block?
Thanks.
submitted by digaumspider to BitcoinAUS [link] [comments]

Guidance paper by ATO (Nov 2017 update): "Tax treatment of crypto-currencies in Australia - specifically bitcoin"

submitted by quietgrowth to AusFinance [link] [comments]

From the ATO - "Do you deal in cryptocurrency? We want your input on the tax treatment of cryptocurrency including Bitcoin." This is our chance to contribute our opinions and help shape how australia tax laws handle crypto

submitted by Camsy34 to BitcoinAUS [link] [comments]

How should I go on about paying off debt to the ATO?

Hey all, my accountant recently finished my tax lodgement, and the calculation was that I need to pay $4700~ in taxes to the ATO.
This is a big sum for me, as I only earn $650 a week from my job, how should I go on paying for it?
Installments? In one go?
Cheers
submitted by Synfenesca to AusFinance [link] [comments]

Australian Taxation Office bitcoin scam: ATO issues warning against cryptocurrency hoax

Australian Taxation Office bitcoin scam: ATO issues warning against cryptocurrency hoax submitted by Ramen_champloo to BitcoinAUS [link] [comments]

AtoS : Arab Owned Syan Technologies finish tapeout for Bitcoin 14nm ASIC chips | 4-Traders

AtoS : Arab Owned Syan Technologies finish tapeout for Bitcoin 14nm ASIC chips | 4-Traders submitted by thrwy2357 to Bitcoin [link] [comments]

bitcoin personal use exemption, inconsistent advise by ATO

I have seen inconsistent advice from the ATO on the application of the bitcoin personal use exemption.
https://community.ato.gov.au/t5/General-tax-questions/How-to-declare-Bitcoin/td-p/980
However, gains from disposal of personal use assets are disregarded. Personal use assets are CGT assets, other than collectables, used or kept mainly for the personal use or enjoyment of you or your associates. Any personal use asset you acquired for less than $10,000 is disregarded for CGT purposes. If you did mine a small amount of Bitcoin as part of a hobby then your cost is generally only the actual costs incurred by you.
For those bitcoin that are just used for personal consumption such as paying a domestic bill then there would be no tax implications.
However, in contrast, if your bitcoin activities were undertaken as part of profit making activities or your occupation included dealing in such kinds of assets, or other similar forms of profit focussed activities, then disposals of Bitcoin would be subject to tax as ordinary income, irrespective of any CGT exemption. This is because if gains are taxed as ordinary income then any CGT exemptions cannot apply to ordinary income taxation.
For example:
For Events A and B, where the mined Bitcoin were acquired as part of a hobby and then just sold or used to pay private expenses then these situations involve disposals of personal use assets disregarded under CGT rules. However, if the Bitcoin mining was undertaken as part of a new form of business activity or profit making strategy then the Bitcoin may have been acquired as part of profit making or business activities and any profit on disposal taxed as ordinary income. For Event C, if the Bitcoin was just traded for a more stable form of investment then the bitcoin trade would be treated as a disposal of a personal use asset under CGT rules. However, if this was done with the intention to be part of profit making or trading activities that you ordinarily undertake then any gains or losses would be taxable or deductible irrespective of capital gains tax treatment. Hope that helps! Thanks.
While this article suggests http://www.adroitlawyers.com.au/tax-treatment-bitcoin/
There is an exemption for personal use in some situations. Some in the bitcoin community have misinterpreted this exemption. Bitcoin will not be regarded as a personal use asset if it is exchanged for fiat currency or used to purchase an asset that is not for personal use.
ATO really needs to give a clarification on the personal use exemption for bitcoin and explain it in relation to btc->alt transactions where you dont cash out.
Say if you bought some ETH using bitcoin, to work on your smart contract project. Could this be considered personal use? What is the definition of an asset that is not for personal use....Some people buy alt coins for speculation, but others buy alt coins to use them, ie cheaper payments ect.
submitted by Spartan3123 to BitcoinAUS [link] [comments]

Aus ATOs take on Capital loss of Bitcoin and Altcoin?

If capital gains are taxable, capital loss of bitcoins should be allowed as offset in tax? What do you think?
submitted by SeedyDrone to Bitcoin [link] [comments]

Interestingly, the ATO (Australian Tax Office) officially views Bitcoin neither as money or foreign currency but an asset for capital gains tax purposes

submitted by Infinite_Monkee to Bitcoin [link] [comments]

You Should Know: Tax authorities have been gathering records from crypto exchanges. You may want to sort out your taxes before they audit you.

Before you downvote me for even mentioning taxes, please hear me out.

I get it. We hate to acknowledge it. The laws are outdated and unfair in most countries and why should I pay taxes if I haven’t sold crypto back into fiat? I’m not here to tell you whether or not you should pay taxes on crypto or not, I’m just here to let you know the following:

Tax authorities around the world have been making exchanges hand over data on who has been buying and selling crypto.

The following countries have recently been going through this data and auditing cryptocurrency holders.
United States: https://www.investopedia.com/news/bitcoin-tax-looms-irs-orders-coinbase-turn-over-user-data/
Australia: https://www.abc.net.au/news/2019-04-30/ato-ramps-up-data-matching-in-cryptocurrency-crackdown/11059446
New Zealand: https://nz.easycrypto.ai/blog/inland-revenue-info-request-to-nz-crypto-companies-sept-2020/
This is not an exhaustive list. Other countries will be doing the same and if you haven’t paid taxes yet I suggest you do some research into what the laws are and if your government is auditing cryptocurrency buyers and traders. If you pay taxes now, you will avoid bigger fines which are given for not disclosing your gains in crypto.
How do I know if I need to pay taxes?
It is fair to assume that if you have made any crypto trade where the value of your crypto when making this trade is greater than when you bought your crypto then you should be researching what your tax obligations are. A trade includes crypto to crypto trades such as selling BTC for ETH in most countries (it doesn’t have to be back into US Dollars or your local currency). For example, if you bought 1 BTC for $5,000 and traded that 1 BTC for ETH when BTC was worth $10,000, then you have made $5,000 in taxable income in most tax jurisdictions. However, this is not the case in all countries, so you should research your local laws to see if this applies to you.
Anyway, I hate to even discuss this because I think that most crypto tax laws are unfair and outdated but that doesn’t change the fact that at some point you will have to pay them. Ultimately, I would rather pay them now rather than have to pay them later with extra fines and fees for not paying them on time.
submitted by Tricky_Troll to ethfinance [link] [comments]

Bitcoin mentioned around Reddit: Australia's ATO Warns of Scammers Demanding Tax Debts be Paid in Bitcoin /r/CryptoNewsandTalk

Bitcoin mentioned around Reddit: Australia's ATO Warns of Scammers Demanding Tax Debts be Paid in Bitcoin /CryptoNewsandTalk submitted by SimilarAdvantage to BitcoinAll [link] [comments]

The ATO also announced it will use new anti-money laundering legislation to crack down on tax cheating bitcoin investors.

The ATO also announced it will use new anti-money laundering legislation to crack down on tax cheating bitcoin investors. submitted by phatkiller to Buttcoin [link] [comments]

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submitted by drexTech to microsoftsoftwareswap [link] [comments]

ATO delivers guidance on Bitcoin

submitted by f1f2f3f4f5f6f7f8f9 to sydney [link] [comments]

Bitcoin mentioned around Reddit: Australia's ATO Warns of Scammers Demanding Tax Debts be Paid in Bitcoin /r/CryptoNewsandTalk

Bitcoin mentioned around Reddit: Australia's ATO Warns of Scammers Demanding Tax Debts be Paid in Bitcoin /CryptoNewsandTalk submitted by cryptoallbot to cryptoall [link] [comments]

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Greetings Redditors! For starters, you can trust us to actually deliver on our promise. We’ve been providing support and solutions to customers for over 3 years now. GigaTech delivers on our core values every day and we keep our promises which is to deliver outstanding IT support and services that propel your business forward.
-Contact me within 24 hours if you have NOT heard back. I might be sleeping or busy. Its good to always follow up. I dont mind getting 5 messages..
I am working with mevelt who is known for speedy transactions and excellent customer Service skills. Think of us as the The Dynamic Duo of reddit :) 5★★★★★ Service! Contact us here mevelt & drexTech
A little about me: I do this part time: I also work a full time job. I hang out a lot on SquareCircle and Anime sub Reddit. I am as real as anybody. I do what I can to make a living and to help support the Fam.

Reviews

Check out some of our reviews via comments from previous threads here
Reviews Thread 1 Reviews Thread 2 Reviews Thread 3

Forms of Payment

Bulk Business Transactions

Those who are ordering in large quantities for small businesses. Please make us aware. We do offer special discounts for Windows 10 Pro and 8.1 Pro bulk orders via debit/credit only.

(NEW) Instagram:

Please check out my friend's instagram page and give her a follow. It will definitely help her out a ton :) https://www.instagram.com/ilikecats1975/
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submitted by drexTech to microsoftsoftwareswap [link] [comments]

Bitcoin mentioned around Reddit: Any experience on ATO's interpretations of cryptocurrency CGT implications in income tax returns? /r/AusFinance

Bitcoin mentioned around Reddit: Any experience on ATO's interpretations of cryptocurrency CGT implications in income tax returns? /AusFinance submitted by SimilarAdvantage to BitcoinAll [link] [comments]

Own bitcoin or other cryptocurrency? The ATO is after you

Own bitcoin or other cryptocurrency? The ATO is after you submitted by leftok to atbitcoin [link] [comments]

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