Australian Tax Office the ICO killer

So I'm a registered tax agent and qualified accountant that had a heavy focus on cryptocurrency.

Recently the Australian Tax Office has come out with a view on taxation of ICOs which i think is going to have a negative impact on Australian based projects.

The ATO view is that the funds raised should be taxed at the company tax rate based on Australian Dollar Value at time of reciept. Now look at the current market and consider this example

Xxx pty ltd undertakes an ICO and raises $10 million worth of eth. The price of eth retracts to 50% of the value of the time of the ICO in reality has only $5million in assets 30 June comes around the ATO raises a bill for $2.75 million. Out of $10million capital raised the company now has $2.25 to utilise for its actual project. Even if the market recovers to the price at time of the ICO the company only has $4.5 Million. As oppose to other methods of capital raising where they would still have $7.25million or more worth of funds to utilise.

This is terribly thought through policy and I feel it is a huge deterrent for companies to invest in blockchain technology at least for the purpose of capital raising