Australian tax department discussing Bitcoin tax without consulting CCCB

[Pierre]

Haha OP you so crazy! The ATO better not make any decisions without consulting you! What are they thinking‽

Seriously see a professional. 

[racerx]

So... where are we with the CCCB and the ATO?

I've been consulting with a well respected tax firm (who have also sought information from a variety of other sources) and at present they cannot offer me any solid answer on how the ATO think btc->fiat transactions will be viewed. 

They recommend if I was to cash out any btc to hold $46% in a term deposit and wait until May the following year (deadline for accountant submitted tax returns) and hope that the ATO has a decision before then... if they go down he CGT route then only pay 23%.

Anyone else got anything more solid?

[seanneko]

So... where are we with the CCCB and the ATO?

I've been consulting with a well respected tax firm (who have also sought information from a variety of other sources) and at present they cannot offer me any solid answer on how the ATO think btc->fiat transactions will be viewed.  

They recommend if I was to cash out any btc to hold $46% in a term deposit and wait until May the following year (deadline for accountant submitted tax returns) and hope that the ATO has a decision before then... if they go down he CGT route then only pay 23%.

Anyone else got anything more solid?

I have no further insight to add - but how did it work for people in previous years? I imagine that people sold decent amounts of Bitcoin last financial year, and maybe even the FY before that too.

What if the ATO hasn't made any decision by mid 2014. Do you simply just put it down as CGT, or do you not declare anything as the ATO has not been able to provide advice on what Bitcoin is?

Also, on a related topic, is it possible to move to New Zealand for a year, sell Bitcoins there (as they have no CGT), then move back here with your money? Being out of Australia for a year means you won't be an Australian for tax purposes.

[Lloydie]

So... where are we with the CCCB and the ATO?

I've been consulting with a well respected tax firm (who have also sought information from a variety of other sources) and at present they cannot offer me any solid answer on how the ATO think btc->fiat transactions will be viewed.  

They recommend if I was to cash out any btc to hold $46% in a term deposit and wait until May the following year (deadline for accountant submitted tax returns) and hope that the ATO has a decision before then... if they go down he CGT route then only pay 23%.

Anyone else got anything more solid?

I have no further insight to add - but how did it work for people in previous years? I imagine that people sold decent amounts of Bitcoin last financial year, and maybe even the FY before that too.

What if the ATO hasn't made any decision by mid 2014. Do you simply just put it down as CGT, or do you not declare anything as the ATO has not been able to provide advice on what Bitcoin is?

Also, on a related topic, is it possible to move to New Zealand for a year, sell Bitcoins there (as they have no CGT), then move back here with your money? Being out of Australia for a year means you won't be an Australian for tax purposes.

Acid test is country of domicile.

[Lloydie]

So... where are we with the CCCB and the ATO?

I've been consulting with a well respected tax firm (who have also sought information from a variety of other sources) and at present they cannot offer me any solid answer on how the ATO think btc->fiat transactions will be viewed.  

They recommend if I was to cash out any btc to hold $46% in a term deposit and wait until May the following year (deadline for accountant submitted tax returns) and hope that the ATO has a decision before then... if they go down he CGT route then only pay 23%.

Anyone else got anything more solid?

I have no further insight to add - but how did it work for people in previous years? I imagine that people sold decent amounts of Bitcoin last financial year, and maybe even the FY before that too.

What if the ATO hasn't made any decision by mid 2014. Do you simply just put it down as CGT, or do you not declare anything as the ATO has not been able to provide advice on what Bitcoin is?

Also, on a related topic, is it possible to move to New Zealand for a year, sell Bitcoins there (as they have no CGT), then move back here with your money? Being out of Australia for a year means you won't be an Australian for tax purposes.

Treat as asset to be conservative unless you were trading. If trading, you must show it is a hobby and not systematic. If systematic then pay full taxes. IMHO, best not to spend btcs.

[r32godzilla]

Whats the go with giftcards purchased with bitcoin? I guess these businesses could be audited by the ATO. However gyft.com in the US as far as I know is all done online so no sending a physical gift card to an address.

Also if I bought a few bitcoins at $130 on an exchange via credit card etc and then cashout later via some other service at $1k each or so what sort of tax will that attract?

So many unanswered questions. Really murky waters at the moment.

[robattfield]

I think forcing tax on Bitcoins might set a dangerous precedence - then it will become regulated and centralized like worthless fiat currency (printed form thin air) is. If it ever happened here in New Zealand, I'd probably lose interest in Bitcoins - I don't want to promote anything that is controlled by a government or government-controlled authority.

Do people think that countries around the world can be serious about regulating Bitcoins like fiat currency? If so, we need to stand up and say no!