I have been reading about different ways to purchase things in the corporate world and how some people use ‘bitcoins’ to carry out transactions. What are these bitcoins and where can I get more information about them?
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Answer by Anton Joseph, Strathfield South 2136 NSW
- Bitcoins are a form of digital currency and part of ‘cryptocurrency.’ All transactions with bitcoins including its creation, supply and use for goods and services are done electronically.
- Businesses are required under the law to record the value of their bitcoin transactions as ordinary income.
- The Tax Office has released 5 determinations:
- TD 2014/25-Bitcoin is not a foreign currency;
- TD 2014/26- Bitcoin is a CGT asset;
- TD 2014/27- Bitcoin can be trading stock;
- TD 2014/28- Bitcoin and FBT; and
- GSTR 2014/3- Bitcoin and GST.