The Bitcoin has been a hit in the previous years, and it hasn’t left any country or continent short of its impact. When we say all of them, we mean Australia too. The ATO (Australian Tax Office) is tightening up in attempts to close loopholes in unusual investments in cryptocurrencies, such as in Bitcoin. The big impact that has happened all around the globe has made all of the tax offices around the globe to put themselves on work, and the Australian one hasn’t been short of this. Cryptocurrency will be one of the areas that will undergo a close attention, along with work expenses and incorrect claims.
Mark Chapman, who is H&R Block’s director of tax communications, has given his opinion on this question, saying to the reporters in recent media press that these areas had seen tremendous systemic abuse, making a huge financial impact to the budget with over $2.5 billion a year. The authorities in Australia state that they will use the system of 100-point identification checks, in which the state will have to implement data-matching techniques in order to investigate cryptocurrency investors and their intentions. This subject has been stated as “murky area”, as of its recent rise and the state organs still don’t know what does the future of Cryptocurrency holds, and more important: How to deal with the possible problems from it. The state has said that a lot of people aren’t aware of their tax obligations.
The ATO has provided guidance regarding the same issue but earlier this year. The document outlines have clearly said that even though all of this “dust” that Bitcoin has raised isn’t seen as money or foreign currency, it is still viewed as an asset subject to capital gains tax, and people are obligated to pay tax accordingly.
But, the whole world has seen the cryptocurrency as a better way of developing the future payment system, and Australia has followed their lead. There have been lots of cryptocurrency developments in Australia recently. For example, earlier this month the airport in Brisbane has become the world’s first to accept cryptocurrencies for retail and services. But, the CBA bank has banned buying cryptocurrency with credit cards, and this still goes to show on that the battle of cryptocurrency is going on and it is not going to end anytime soon!