The Board of Taxation has published their much-anticipated Consultation Guide for the review of the tax treatment of digital assets and transactions.
The Guide invites interested parties to participate in one of the seven consultation sessions and to make confidential or public submissions up until 30 September 2022.
The proposed consultation questions broadly surround identifying:
- Uncertainties created and/or incompatibilities arising from our tax laws in taxing crypto assets;
- How different taxpayers view the tax treatment of crypto assets (e.g. retail vs wholesale investors);
- Improvements that Australia can make in taxing these arrangements (including improving tax transparency and lessons Australia can learn from other jurisdictions);
- Changes required to be made to Australia’s taxation laws in order to tax crypto assets; and
- Compliance improvements to assist taxpayers in completing their tax obligations (including what additional support can be provided to assist).
We welcome the Board of Taxation’s acknowledgement that the application of current tax laws in this space is uncertain and that tax laws should take into account the rapidly evolving nature of digital assets.
Do not hesitate to reach out to the KWM Crypto Tax Team if you'd like discuss the Guide or would like assistance in providing a confidential or public submission.
