On June 24, the Australian Tax Administration's crypto regulation issued rules for crypto investors to pay taxes in excess of the amount of the investment itself.
Taxes are more than investments
In an interview Micky.com Adrian Forza, director of Crypto Tax Australia said that one of his clients, who own a cryptocurrency in the amount of $ 20,000, had to pay $ 100,000 in tax.
According to Forza, this was due to the fact that the Australian Taxation Office (ATO) requires that the cost of cryptocurrency was fixed at the time of their receipt.
Forza's client was paid in cryptocurrency for the development work that he performed for a foreign company in 2018. At that time, the cryptocurrency cost $ 250,000 and he had to announce this value, but by the time his account appeared, the rate had fallen and the amount of his savings was only $ 20,000.
"This is indeed an unfair amount, because the cost of cryptocurrency has fallen significantly, and now he has to pay tax for the money that he no longer has," Forza said.
Moreover, he also said that ATO has some other interesting rules regarding cryptocurrency, which many investors do not know about.
For example, ATO believes that the "original version" is Ethereum Classic (ETC), not Ethereum (ETH), which is a common opinion in the crypto space, so anyone who kept ETH during hard forks and sold it later will buy ETH for $ 0.
Interesting in the section: Ethereum Classic, as a worthy member of the cryptocurrency market
This means that they will have to pay 100% capital gains tax on the money they received from the sale of ETH.
The same solution applies to Bitcoin SV (BSV) and Bitcoin Cash (BCH) customers.
"Any coins you received as hard forkFork
– is the intentional use of one code base of a software project to start another. That is, changing the blockchain code to split it into two.Details will cost zero," Forza explains.
In addition to Forza, many other users of the crypto industry in this country believe that the crypto rules of ATO taxation are in desperate need of reform.
The ATO should create clearer definitions for various types of cryptocurrencies, as well as a mechanism that would allow investors to compensate for tax losses that they have already paid.
New ATO rules: crypto investors pay tax more than the amount of investements. Recall that Australia announced its latest blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details strategy and funding in the amount of 100,000 Australian dollars for further work on the blockchain policy framework.
Editor: Yulia Krasnaya