Australia Delays Promise to End Bitcoin Double Tax
Over a year after the Australian government promised to put an end to the double taxation of bitcoin purchases, authorities are yet to formally legislate the changes. Under still-current rules mandated by the Australian Tax Office, bitcoin is seen as an “intangible” property. By definition then, bitcoin is a money instrument and cannot be a “negotiable instrument.” Taxing Bitcoin Transactions. Twice. ‘This means that existing laws dictated a double tax on bitcoin, once when exchanging fiat for digital currency, and goods and services tax (GST) applied again when a digital currency is used....
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The recent ruling of the ATO in Australia has led to a situation where users of Bitcoin and other Cryptocurrencies will effectively be charged a double Goods and Services Tax (GST) for buying and using Bitcoin and other Cryptocurrencies. In effect, what is happening is the user will be charged a 10% GST when purchasing Bitcoin from an exchange. Then when the same user goes to The Living Room of Satoshi or another Bitcoin and Cryptocurrency related business they are charged a 10% GST yet again. This situation has led to The Living Room of Satoshi shuttering its business as the new....
This article has been updated with additional comment from igot users. The founder of Australia-based bitcoin exchange igot has refuted claims his business is a scam. Igot recently came under fire, with many of its users complaining about delays to their withdrawals, branding the company "untrustworthy" and claiming they'd been robbed. Rick Day, igot's founder told CoinDesk the delays particularly affected fiat withdrawals, attributing them to a number of factors. "They [the issues] are as not as big as they appear from the outside ... one of the biggest issues that we have with delays is....
In Bitcoin, the promise of a limited supply is great. This was one of the biggest things that initially appealed to me when I heard about Bitcoin. “No more than twenty one million bitcoins will ever exist!” But can this promise be kept in the long run? Has the Promise Already Been Broken? Some would […] The post 21M Bitcoin and the....
However, it seems only normal governments around the world want to make sure Bitcoin is part of their AML regulation. Moreover, this decision indirectly gives cryptocurrency the label of “money” in Australia. Exciting changes are coming to Bitcoin in Australia, as the federal government will change their regulatory stance on cryptocurrency. Avoiding double taxation is the primary objective, and local AML/CTF regulations will be extended to cryptocurrency. First and foremost, the Australian government has announced they will change the way GST on Bitcoin is calculated, as they want to avoid....
In the latest hurdle to beset the cryptocurrency sphere in Australia, a new government tax paper has listed Bitcoin among the methods which make it difficult for authorities to track tax avoidance. The Re:think paper published by the treasury states that when the current Australian tax system was designed, “[n]ew ways of transacting, including cryptocurrencies such as bitcoin, were not contemplated.” The end result, the government says, is that: “[t]hese developments make determining the appropriate tax outcome for a particular company in a specific country difficult, and raise concerns....