[2014-12-19] The Guardian: Bitcoin hit with tax blow in Australia

[pawel7777]

http://www.theguardian.com/technology/2014/dec/19/bitcoin-hit-tax-blow-australia

Australia’s tax authorities have ruled that bitcoin transactions are subject to the goods and services tax (GST), suggesting that the cryptocurrency is not likely to be classed as “money” in the near future.

The ruling mainly applies to Australian businesses running bitcoin exchanges, which let customers trade real money for the digital currency. The decision means that when bitcoin is bought from an exchange, it will have to pay GST on the supply of bitcoin.

GST does not usually apply to financial transactions, meaning that a conventional money exchange does not have to charge the tax when Australians buy foreign currency.
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[ArticMine]

I have said it before and will say it again. Bitcoin will be used to legally avoid and also evade the GST in Australia. https://bitcointalk.org/index.php?topic=873214.msg9655980#msg9655980

[bitbouillion]

Now they are in phase 3 of 4: "fight it".

But worth reading this:

The difference lies in whether the company buys and sells bitcoin itself, or merely facilitates transactions between third parties in a manner akin to a stock exchange. If it is the latter, then GST is only due on the percentage commission the exchange charges - not on the total amount bought.