Australia reaffirms pledge to fix Bitcoin tax issue

Australia’s government is pushing ahead with plans to solve the “double taxation” problem of digital currencies in the country.

The government pledged more than a year ago to solve the policy dilemma, wherein Australian businesses are liable for goods-and-services (GST) taxes on any bitcoin sold – as well as taxes should they take them as payment. It’s a point of criticism expressed for years by the country’s bitcoin community, culminating with last year’s commitment.

According to statements published today, the government is consulting with its fintech advisory group on the matter – though it cautioned that any material changes would depend on action on the provincial level.

The policy document, released by Minister for Small Business Michael McCormack, explained: “Any change to the GST treatment of digital currencies is subject to formal state and territory agreement.”

As for when those changes might be in place, the government didn’t offer a firm deadline.

In the document, the government also reiterated its support for Australia’s digital currency space, declaring that its plans to regulate exchanges under existing AML/KYC statues would help foster development in the sector.

“The Government is committed to facilitating innovation and growth in the digital currency sector and considers that appropriate anti-money laundering and counter-terrorism financing (AML/CTF) regulation will aid that development,” it said.

It’s the latest sign that Australia’s government wants to create an accommodative environment for both bitcoin and blockchain activities.

To read more, please click on the link below…

Source: Australia Reaffirms Pledge to Fix Bitcoin Tax Issue – CoinDesk