Altcoin News: A Resident of Australia Turned out to Owe the State $100,000, Withheld as a Tax on Cryptocurrency Assets Worth $20,000

June 25, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

A resident of Australia turned out to owe the state $100,000, withheld as a tax on cryptocurrency assets worth $20,000, reports the local portal, Micky.

As explained by the director of Crypto Tax Australia, Adrian Forza, such a claim was made to one of his clients by the Australian Tax Administration (ATO), according to the rules of which the value of the asset is determined at the time of receipt.

The client received payment in a cryptocurrency at a historic high in January 2018 for developer services that he provided to a foreign company and was forced to declare its total value of $250,000. By the time of the calculation, the amount had dropped to $20,000.

“It was a disaster,” Forza said. “That’s a really unfair outcome because he’s basically received cryptocurrency and the value has dropped significantly and now he has to pay tax on money he doesn’t have. “This is something they will have to change as it is unfair.”

Forza also spoke about other features of the taxation of digital assets in Australia. So, ATO considers Ethereum Classic an “original” chain and claims that everyone who received coins as a result of a fork, in fact, purchased them for $0. Thus, the subsequent sale of Ethereum, according to the classification of the ministry, is nothing more than the fact of receiving 100% return on capital, from which it is necessary to pay the corresponding tax. For example, Bitcoin Cash and Bitcoin SV coins are treated in the same way.

“In the crypto space people think of Ethereum as the original, but the ATO has said that ETH is the one that changed and ETC kept all of its original properties,” he explained.

Earlier, the ATO said it would identify traders who evade taxes by trading in cryptocurrencies abroad.

Author: Marko Vidrih