Australian tax alert: GST and Bitcoin — potential pitfalls
Bitcoin has received a lot of recent press attention, both as a speculative investment and as an alternative payment option to fiat currency. The anonymous nature of Bitcoin payments has also caught the attention of tax authorities and other regulators, both in Australia and overseas.
One issue that has received little attention is the goods and services tax (GST) treatment of Bitcoin transactions that occur within Australia. As discussed below, Bitcoins may not qualify as ‘money’ for GST purposes. As a result, some Bitcoin payments or trades conducted within Australia could attract GST (which is not generally the case for transactions involving fiat currency).
These issues are particularly relevant for GST registered entities that may accept Bitcoin payments. After receiving such payments, an entity will likely either…
Click on the link below to read the rest of the DLA Piper briefing.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The interpretation of the scope of application of the investor’s right to withdraw from any contracts for the placement of door-to-door financial products has again captured the attention of all players.
Tax Newsletter — July/August 2014: SAT strengthens reporting request under China CFC rules; and more
DLA Piper has released the July/August edition of its Tax Newsletter, which provides a review of PRC and Hong Kong tax developments.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions