Bitcoin is firmly on the ATO’s radar

 

The Australian Taxation Office (ATO) has recently released four draft tax determinations and one draft GST ruling on bitcoins.

In summary,

  • Personal transactions are not currently a focus of the ATO;  but
  • Making money from buying the bitcoins at a low price and selling them for a higher price at a profit could be considered a taxable event to which either income tax or capital gains tax applies; and
  • Using bitcoins for business transactions, instead of cash to either receive money or pay money for services or products has the same rules as the barter system. This means the appropriate GST needs to be remitted or claimed from the ATO, and/or the appropriate income or expense needs to be declared in the business tax return.

To find out more, go to the ATO link below

 https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia—specifically-bitcoin/

To find out how these ATO determinations will affect your bitcoin transactions, call us at CIB Accountants & Advisers and ask for Graeme Bellach or Joel Halbert on + 61 2 9683 5999.