Tax Update: Australian tax and GST treatment of bitcoin and other crypto-currencies
By Matthew Cridland
The Australian Taxation Office (ATO) has released its long-awaited public guidance on the Australian tax and goods and services tax (GST) treatment of bitcoin and other crypto-currencies. This guidance was originally scheduled to be released on 30 June 2014. It was delayed while the ATO considered further submissions and sought advice from legal counsel. The issues raised in the ATO’s guidance will be relevant to all businesses considering trading or making payments with bitcoins in Australia, including businesses considering accepting bitcoins as payment for goods or services. In this Tax Update, we have summarised the ATO’s views and outlined the potential risks and options for affected businesses.
Note that in this Tax Update we have used the capitalised term ‘Bitcoin’ to refer to the Bitcoin payment system and the non-capitalised term ‘bitcoins’ to refer to the crypto-currency.
For GST-registered businesses that supply bitcoins in Australia, the ATO’s view is that: bitcoins are neither money nor a foreign currency; making a payment with bitcoins is akin to a barter transaction (potentially triggering a GST liability on the bitcoin payment); the sale of bitcoins (for example as part of an exchange transaction) is a taxable supply and subject to GST; and input tax credits (GST credits) may be available for the acquisition of bitcoins through a taxable supply…
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
Cour de Cassation quashes decision that disregarded ICC rule on time limits to arbitrator challenges — two takeaways
This milestone decision further limits the scope for French courts to annul arbitration awards and reinforces the efficiency of France-seated arbitral proceedings.
This decision is in line with a possible judicial trend towards enforceability of good faith obligations under English law.
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