Editor: Bitcoin is a software-based online payment system, which the US Treasury has called a “decentralized virtual currency”. The media often refers to Bitcoin as a cryptocurrency or digital currency.
The ATO has issued a guidance paper, basically stating that bitcoin transactions are treated as barter transactions with similar taxation consequences.
As far as record-keeping is concerned, the ATO says that businesses should keep records of:
- the date of the transaction;
- the amount in Australian dollars;
- what the transaction was for; and
- who the other party was (even if it is just the bitcoin address)
* * * Disclaimer: The information is sourced from NTAA. * * *
Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their circumstances.
