Will you pay tax on your Ethereum profits?
Will you pay tax on your Ethereum profits? Well it depends. The latest guidance issued by the Australian Taxation Office (ATO) on this topic is almost three years old and it is yet to clarify many areas that although may not be such an immediate problem for the Taxation Body of Australia, this writer believes very likely, it soon will be. Online communication platforms and forums of the like have absolutely no shortage of common tales of financial windfalls from dealing in cryptocurrency trades. As it stands, the Taxation impact is not that straight forward as the guidance really implies in its tone. The cryptocurrency market has extrapolated its capacity and interest is pouring in. I expect that as more and more mainstream interest trickles in, our regulatory bodies will take a much more active (and probably more aggressive) approach to some form of control.

This piece in no way is able to answer such a question to your tax situation. This will require more of an understanding of the transaction you undertook and the numerous, precise facts behind what happened. What we can say is don’t underestimate the ATO Commissioner’s ability to capture a space he may or may not fully yet understand. Yes, the blockchain platform is more complicated than most could care to explain in simple terms. However, it’s not to say that it is being ignored. This is definitely a space that is being watched very carefully, and whilst this writer cannot confirm the extent to which the Australian regulatory bodies are ready to release their stances, policies, guidances, or legislation, it is understandable that it’s a very complicated area with precise understanding needed before impactful decisions can be made.
In the meantime CryptoVisum will be keeping abreast with all regulatory information updates, offering opinions and general commentary as it eventuates.
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