Bitcoin Transactions Can Be Taxed: ATO

The Australian Taxation Office is confident that it will be able to tax Bitcoin transactions and investments just as it does any other currency, the AFR reports.

Katie Walsh and Jason Murphy of the Fin report that conventional tax rules – including GST and income tax – apply to purchases made with Bitcoin.

Speculative investors should keep detailed records as they may also be taxed.

Senior assistant commissioner for the cash economy Michael Hardy told the Fin:

“Bitcoin is no more anonymous than physical cash and the ATO has experience in working with earlier forms of ¬≠anonymous electronic money systems, and with physical cash, which are relevant for responding to new and emerging ¬≠systems

The ATO will continue to monitor its volatility, how widely it is accepted, its interaction with conventional currencies through exchange mechanisms and international developments.”

There’s more on the Fin.

Now read: The Fed Is Studying The Risks Of Bitcoin

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