Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Australian Treasury consults citizens on Bitcoin’s foreign currency tax exclusion.
The public has been provided 25 days to share their views on the proposed legislation.
- Australian Treasury consults on considering cryptocurrencies as foreign currency
- This is to consider whether or not to exclude them from the tax that applies to foreign currencies.
- The population has until September 30 to respond to the consultation.
Australia’s Treasury department decided to hold a public consultation on the bill that would exclude cryptocurrencies from being taxed as foreign currency if passed.
By way of background, on 22 June 2022, the Government announced that it would would introduce legislation to exclude crypto-assets as Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. to be treated as foreign currency for Australian income tax purposes. For this reason, the bill Amendment to the Treasury Laws (Measures for Consultation) Bill 2022: Tax Treatment of Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Currency currency is a medium of exchange that defines value. and associated draft explanatory material have been published for public consultation and interested parties are invited to provide comments.
No foreign currencies
In a press release, Deputy Treasurer Stephen Jones highlighted the Australian government’s intention to exclude cryptoassets from be considered foreign currency for tax purposes .
However, it is worth noting that the legislation would have no impact on the collection of capital capital is most commonly defined as the large sum of money you would use to invest. gains gains refer to an increase in value or profit. tax on cryptocurrencies held as investments.
The public from September 6-30 to express their opinion on the proposed legislation.
If it becomes law, there will be an amendment to the existing definition of digital currency in the Goods and Services Tax (GST) Act, effectively excluding cryptoassets from the definition of foreign currencies . GST is a broad-based tax levied on goods, services and articles sold or consumed in Australia, explains Cointelegraph.
After El Salvador
Curiously, in the press release issued, it refers that the decision to make this consultation on tax agreements is related to
with the decision of the Government of El Salvador to allow the Bitcoin as legal tender, which he explains, “has the potential to create uncertainty about the status of cryptoassets such as Bitcoin for tax purposes in Australia.” Fundamentally they are looking for “ avoid ambiguity following the decision of the Government of El Salvador”.
Indicates that, therefore, “the Government will move to clarify current arrangements in legislation that will mean cryptoassets will not be considered foreign currency for tax purposes.”
The Treasury says that the consultation can be answered by email or by traditional mail, although electronic submission is preferred. For accessibility reasons, it asks that responses sent by email be sent in Word or RTF format. An additional PDF version can also be sent. The email address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. is CryptoTax@treasury.gov.au .
Indicates that all information (including name and address details) contained in submissions will be made publicly available on the Treasury website, unless the citizen indicates that they wish all or part of their submission to remain confidential.
It’s worth remembering that the concern about crypto and taxes comes from before. In May this year, the Australian Taxation Office, ATO, included cryptocurrency-related gains. among several priority areas where more efforts are needed to ensure correct information . The authority reminded taxpayers to calculate any capital gains or losses from the sale of digital coins and tokens and record them on their tax returns.
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