The Australian Taxation Office (ATO) has launched a community consultation in order to better understand practical issues faces while ensuring compliance with cryptocurrency tax obligations.
The ATO last month published its guidance on “Tax treatment of cryptocurrencies” to explain the tax consequences for taxpayers transacting with cryptocurrencies. However, it said that growing interest in this emerging asset class has resulted in queries from the community about how to approach specific tax events.
“The purpose of this consultation is to seek feedback on practical compliance issues arising from complying with taxation obligations in relation to cryptocurrency transactions. 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 capital gains tax (CGT) purposes,” the ATO said.
This consultation is limited to two issues: record-keeping as it relates to cryptocurrency transactions, and exchanging one cryptocurrency for another cryptocurrency.
The ATO said that the feedback could be taken into account when developing further advice and guidance products in relation to the taxation of cryptocurrency. The deadline for submissions is 20 April.
Earlier this month, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced the implementation of Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) rules digital currency exchange (DCE) providers.
