| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051932249952
Date of advice: 14 December 2021
Ruling
Subject: CGT - cryptocurrency
Question
Are your cryptocurrency transactions assessable on capital account under Capital Gains Tax?
Answer
Yes. The low volume of transactions and the nature of those transactions clearly show you are an investor in cryptocurrencies not trading for profit.
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You acquired a variety of cryptocurrencies and had holdings in more than X different cryptocurrencies at the end of the year.
You had nearly X transactions where you bought various cryptocurrency.
You had about X transactions in which you disposed of some cryptocurrency to rebalance your holdings.
Most of those sales took place on X days in early 20XX, of the other sales, all but X took place on X other days in early 20XX. Nearly half of the transactions were in one particular cryptocurrency on the same day.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 Part 3