Australian Tax Office (ATO) to Chase down Bitcoin Investors
An article in the Australian Newspaper today highlighted a push by the ATO to chase down tax through cryptocurrency investors. According to the article, tax-dodging Bitcoin investors will be confronted by the full investigative powers of the tax office, which has revealed it will use anti-money laundering legislation due to come into force next month as the basis for a long awaited blitz on cryptocurrencies. Tax Blitz on Bitcoin Investors
I was made aware of the ATO investigating any cryptocurrency transactions of $10,000 or more by a friend who works in that governmental department. They informed me that the taskforce has been setup to monitor payments to counteract any possible money laundering or terrorist funding opportunities.
According to the current statement from the ATO, Bitcoin is not a personal use asset, therefore, normal Capital Gains Tax rules apply. The ATO will apply a top marginal tax rate of 47% including medicare levy after a 50% discount if the Bitcoin has been held for more than 12 months. If not then the 50% discount will probably not apply and this is the grey area according to tax laws at the moment in Australia.
It will be interesting to see how governments across the globe approach cryptocurrencies in terms of tax laws and how they will be able to track and monitor payments and determine whether a cryptocurrency was an investment or a source of income. STEEM will most likely throw a spanner in the works as it is actually an income producing cryptocurrency, as opposed to a crypto that you might invest in like Bitcoin. Obviously you can invest in STEEM also, but many could claim it as an income stream.
Thanks for reading.
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G'day. I've been listening to all the carry on as well.
I guess if you're an active trader with a transaction trail they could be able to build a history of your financial gains from exchanges.
Would overseas exchanges provide that information to the ATO?
How are they going to deal with the HODLers?
For example: if somebody bought 5k of cryptos 2 years ago and have not converted any back to AUD then there has been no gain (even though it might be worth 30k now).
What happens if all the cryptos are kept offline and only used for spending? (no gain)
What happens if the individual takes the hardware wallet overseas on their holiday and uses it for spending money in the local currencies of the countries they visit?
What happens if it's used over time as a supplement to retirement funds or the pension?
etc.........
Good luck with that ATO!!!
Anyway, if the whole Crypto thing goes according to plan, there won't be Central Banks or Governments to worry about!
Viva La Revolution.....Lol
Interesting Coincidence!
I was talking to Aus about The CryptoCurrency Tax Fairness Act which would provide tax exemptions to crypto investors in the US. Essentially, it has little chance of passing but the hope is to lay groundwork for future legislation to allow for movement towards lowering or eliminating taxes for entrepreneurs trying to invest in crypto.
BTC is similar in the USA to Australia on the fact that it is taxed with capital gains tax but some regualtions categorize things like ICOs as securities which apply different taxes and other regulations apply certain property taxes to BTC that is abnormal to capital gains tax.
In general, it is a giant cluster f*ck that is confusing which is one of several reasons that only about 800 of the thousands of investors have reported it on their taxes.
thank you for sharing the information about the tax cryto friend @scooter this is a rare news we can in aceh, @jhoni will always be present in your post although late because there is activity, I know you are a kind person, because in post my friend always present.
thanks for the post @scooter77.
I really like your posts.
I think that all crypto heads should turn they heads to the their governments and join together to prosecute government bit...es
I can imagine fear in their eyes when all the heads are looking into their direction
I doubt that those tax office workers even know how bitcoin and other cryptos work but of course they want to tax it..
I wonder if the Australian Government has even heard of Steem yet?
Crypto is really giving government officials headache, this revolution of money has actually change peoples life far better than paper note. Whatever the case maybe crypto has come and stay. Thanks for the information.
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