Since the crypto thing has taken off, people are earning through the system and putting back profits into their banks. Although ATO hasn't come up with slapping a tax on it but what if they will? My question is whether ATO can request bank account information such as a statement directly from a bank?
Is there any other way available for ATO to find out about your other Income?
The ATO already has massive amounts of data re. bank accounts for this sort of thing. Gains from crypto trading are no different to any other gain … the ATO wants its cut!
The ATOs cut is OUR cut. Power to the people!
ATO hasn't come up with slapping a tax on it
Yes they have, it's called Capital Gains Tax.
Also I believe all the Aussie exchanges selling BTC for AUD report to the Tax Office, so they'll know if you're not reporting on any gains from trading Bitcoin.
Dunno, ask Paul Hogan re tax evasion.
hi everyone,
now that many of us are invested / experimenting with (or still planning to invest) in cryptos, i was wondering if there are experts who know the tax implications of using crypto-currencies?
while going through cryptos section on ATO's website i realized that it only talks about buying & selling (or spending) bitcoins in particular. it doesn't touch upon on various topics such as
1) if you buy altcoins using bitcoins, whether it is considered as sale of bitcoins and can result into profit / loss?
2) investing in ICOs. does CGT applies to bitcoins only or other altcoins as well?
3) using bitcoins for overseas currency transfer.
4) also for bitcoins, ATO expects us to record the address of the opposite side. if we buy/sell it from exchange, do we just need to specify it as exchange?
i wonder if anyone has tried these things in last financial year and declared it or knows how to? i'd also be interested to know if any of popular OZ crypto exchanges such as coinjar / coinspot etc provide any end-of-year tax statement summarizing profit/loss for specific financial year.
i know its way too early to ask these questions for end of next financial year but i would prefer to avoid last minute rush to gather this information from various sources. also given that the rate is highly volatile, it would be better to record transaction details on-the-go unless exchange provides some kind of annual report with precise details.
Thanks.
not sure why my thread got merged with this thread. they kinda look similar but the intent in the original thread seems to be different than mine. looks like so far the picture is not clear to many. certainly, will need to seek professional advise around end of year.
The way I look at it, if you transfer your crypto out to another wallet where you information is truly anonymous…then how can they know that you aren't simply buying stuff with your crypto…and then if you transfer back to your btc account to cash out your money…it could be payment for something of yours that you sold, like a family antique or something?
The other question is…the ATO does not charge CGT on the proceeds of gambling (like lotto) or people who do high risk trading (e.g contracts for difference) …it makes sense because if people claimed their losses on these gambling activities, the ATO would be much worse off. But given the huge volatility of crypto and its high risk, when does it become considered as investment vs gambling?
My tax accountant mate mentioned there might be a way out of CGT if the initial purchase was under $2000. Anyone heard of this? He's not offering more information.
See ATO link on my first post.
Generally, there will be no income tax or GST implications if you are not in business or carrying on an enterprise and you simply pay for goods or services in bitcoin (for example, acquiring personal goods or services on the internet using bitcoin).
Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less.
Yeah, Im not talking about buying stuff with bitcoin, I'm talking about cashing out.
Cashing or buying stuff with Bitcoin is the same. Once you are no longer the owner of an asset, that disposal may trigger a capital gains event.
No mention on ATO site about $2k figure. If your $2k has become $2million, ATO will be wanting to put their hand out.
@Baysew: I think that's the opposite of the quote you just posted. As far as I can tell, you pay CGT on cashing out, but you don't pay CGT if you purchase something under $10k.
@Burnertoasty: Possibly! What I think ATO is saying is, if you are buying Bitcoin as an asset, there will be CGT. If you are buying Bitcoin to make transactions, there won't be "provided the cost of the bitcoin is $10,000 or less".
So maybe there is wiggle room.
Tax treatment of crypto-currencies in Australia – specifically bitcoin
ATO have far reaching powers to ensure that taxes are collected, sometimes the even use them.