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Money The Australian Tax Office Is Looking Into Your Bitcoin

17:41  10 january  2018
17:41  10 january  2018 Source:   lifehacker.com.au

The financial winners and losers of 2017

  The financial winners and losers of 2017 2017 was a shocking year for the major banks.Traditional institutions – from the big four banks to polished floors of Myer – saw wave after wave of poor press, while new currency on the block in Bitcoin had journalists scrambling to understand everything they could about the blockchain.

The Australian Tax Office (ATO) is The Australian Tax Office (ATO) is establishing a taskforce to monitor cryptocurrency transactions, according to a report in The Australian Financial Review. Bitcoin is trading lower today, falling below $US14,000 on the composite index this morning (AEDT)

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The Australian Taxation Office (ATO) is establishing a taskforce to monitor cryptocurrency transactions, according to a report in The Australian Financial Review. The taskforce aims to ensure cryptocurrency investors are paying the correct amount of tax.

A team of specialists across tax law, technology, banking and finance will devise strategies to follow the money on gains made from investment in digital currency.

“We are consulting with key stakeholders who have expressed an interest in tax issues relating to cryptocurrencies,” a spokesman for the ATO said.

“We will discuss common queries and scenarios, practical issues and the tax implications for current and anticipated future developments in relation to cryptocurrencies.”

Bitcoin's share of the crypto market hits an all-time low as 'alt-coins' go wild

  Bitcoin's share of the crypto market hits an all-time low as 'alt-coins' go wild Crypto's total market cap hit an all-time high above $US660 billion on Tuesday as so-called alternative coins, or "alt-coins," charged upwards. Meanwhile the largest crypto, bitcoin, lagged behind small rival coins.As the year progressed, and new coins came onto the market, bitcoin's position dwindled. That trend has continued into 2018.

Tax treatment of crypto-currencies in Australia - specifically bitcoin . Transacting with cryptocurrency. If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.

The Australian Tax Office has provided businesses with some more guidelines on how it intends to deal with bitcoin , stating that income and profits derived from bitcoin transactions are taxable. The letter, sent to an Australian bitcoin entrepreneur in response to a request made last June

Bitcoin is trading lower today, falling below $US14,000 on the composite index this morning (AEDT) tracked by Coindesk.com, after climbing above $US15,000 overnight.

Australian banks — still battered and bruised over extensive money-laundering revealed last year — are also believed to working with the ATO and Austrac, to assist in tracking money flows stemming from cryptocurrency investments.

Cryptocurrency Ripple continues steep rise in 2018

  Cryptocurrency Ripple continues steep rise in 2018 XRP has added almost 45 percent more value since the calendar ticked over into 2018. Ripple – which officially trades the currency XRP – is described by its San Francisco-based start-up as "a frictionless experience to send money globally using the power of the blockchain".At midnight on December 31, XRP was trading at $US2.29. At the time of publishing on January 4, XRP added 44.9 percent more value at $US3.32.In mid-December XRP was trading at US 25 cents each.

The Australian Tax Office (ATO) has provided businesses with some more guidelines on how it intends to deal with bitcoin , stating that income and profits derived from bitcoin transactions are taxable. The letter, sent to an Australian bitcoin entrepreneur in response to a request made last

The Australian Tax Office has released guidelines on bitcoins , and other digital currencies, saying it will provide certainty to users and the wider community. " Bitcoin usage in Australia is growing rapidly and our customers tell us they are looking for more ways to spend their bitcoin ," co-founder

Bank customer accounts can be mined by the ATO for large transactions made or received, as tax authorities establish ways to follow the money trail.

At the end of last year, some cryptocurrency investors said Australian banks were freezing their accounts and banning transfers to cryptocurrency exchanges.

Regulatory risk is one of the main question marks hanging over cryptocurrencies in 2018 as more money flows into the market.

In addition to increased oversight from tax authorities and banks, corporate watchdogs — such as ASIC in Australia — are also establishing stricter guidelines for how cryptocurrencies will need to comply with corporate law.

In addition to following the money trail, the ATO is also seeking advice on how they will tax cryptocurrency transactions and determine tax liabilities, a tax specialist told the AFR.

Currently, the ATO does not recognise bitcoin and other cryptos as money or foreign currency for tax purposes. Instead, they are assessed as assets for the purpose of calculating capital gains tax.

Tax specialists are receiving an increasing number of queries about the tax implications of cryptocurrency investments.

Bitcoin Miners Are Shifting Outside China Amid Clampdown

  Bitcoin Miners Are Shifting Outside China Amid Clampdown As China’s crackdown on cryptocurrencies broadens to bitcoin miners, some of the industry’s biggest players are shifting operations overseas. Bitmain, which runs China’s two largest bitcoin-mining collectives, is setting up regional headquarters in Singapore and now has mining operations in the U.S. and Canada, Wu Jihan, the company’s co-founder, said in an interview. BTC.Top, the third-biggest mining pool, is opening a facility in Canada and ViaBTC, ranked No. 4, has operations in Iceland and America, their founders said.

Australia ’s Tax Office has spoken, and it has declared that it will not treat Bitcoin as money or as foreign currency. In addition Australian case law provides a further test in requiring that a medium of exchange ought The role of the GST or the Goods and Services Tax will now come into sharp focus.

According to the article, tax -dodging Bitcoin investors will be confronted by the full investigative powers of the tax office , which has revealed it will use anti-money laundering legislation due to come into force next month as the basis for a long awaited blitz on cryptocurrencies.

The first meeting of the ATO and various industry experts is expected to take place next month.

Bitcoin Tumbles 20% as Fears of Cryptocurrency Crackdown Linger .
January’s cryptocurrency selloff got fresh impetus on Tuesday when bitcoin slumped as much as 20 percent, as the prospect of regulatory crackdowns appeared to spread. While the largest digital coin trimmed its loss and was down 13 percent at $12,146 as of 8:28 a.m. in New York, it was still at the lowest level since late December, according to composite pricing on Bloomberg. As bitcoin halted its two-day rally, rival cryptocurrencies also tumbled. Ripple sank as much as 33 percent and ethereum dropped 24 percent, before both tokens pared some declines.

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