Source: Australian Tax Forum Journal Article
Published Date: 1 Apr 2022
The increasing popularity of digital or cryptoassets raises issues, not only for the declaration of income earning activities, but also the consequential tax obligations. We explicitly consider the positioning of cryptocurrencies as a means of settling tax debts and the associated regulatory barriers impeding the implementation of such by the Australian Taxation Office (ATO). While the ATO offers taxpayers 'flexibility' in the settlement of their tax obligations, the current regulatory framework does not provide the legal basis to support paying via bitcoin. We examine the tax administration regulations and related judicial guidance to explore the issues surrounding cryptocurrencies and tax debts. Furthermore, we outline the associated practical and political issues.
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