For several years, Australia has been one of the best countries in the world for the cryptocurrency industry. Diffusion is a key factor for the overall growth of the virtual assets industry, with Australia playing a crucial role in their wider implementation in everyday life.
However, according to the local edition of Micky.com, the Australian Tax Administration (ATO) forces cryptoinvestors outside the country to pay huge taxes on their virtual assets. Often it turns out that taxes paid are higher than investments in cryptocurrency.
Adrian Forza, director of Crypto Tax Australia, said that one of his clients had to pay $ 100,000 in taxes on assets worth only $ 20,000. The situation arose due to the fact that, according to the rules of the Australian Tax Administration, the value of virtual assets must be declared at the time of their receipt by the buyer.
Forza’s client announced the value of the purchased assets back in January 2018 (when the market was on the rise). At the time of the announcement of the cost of the cryptocurrency was estimated at $ 250,000. However, at the time of filing the tax return, it was already worth $ 20,000. Forza called this situation an absolute “catastrophe”.
This is really unfair, <…> the cost of cryptocurrency has fallen significantly, and now he has to pay tax on money he does not have. This is something that will have to change [in tax law] because it is unfair.
Forza believes that the tax law of Avtralia should be “more transparent” in relation to profits derived from investment or mining cryptocurrency. Existing laws and their implementation can be a serious obstacle for cryptoinvestors.