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Edited version of private advice
Authorisation Number: 1052083464039
Date of advice: 3 February 2023
Ruling
Subject: CGT - cryptocurrency
Question
Is the transfer of the cryptocurrency from your cryptocurrency account to your family member's cryptocurrency account a capital gains tax (CGT) event?
Answer
No.
Based on the information and evidence provided, it is accepted that the beneficial ownership of that cryptocurrency was different to the legal ownership. In this case, as you were not the beneficial owner of the asset, you did not have a CGT event happen to you. The beneficial owner may have CGT implications upon their disposal of the asset.
This ruling applies for the following period:
Year ended 30 June 20xx
The scheme commenced on:
1 July 20xx
Relevant facts and circumstances
You own a cryptocurrency account.
You purchased an amount of cryptocurrency on your family member's behalf.
You have provided contemporaneous documentation indicating that the cryptocurrency was purchased on the family member's behalf.
The family member paid you the funds for the purchase of the cryptocurrency.
You made the transaction as the family member was not experienced in cryptocurrency and it was easier at the time for you to make the purchase on their behalf.
You held the cryptocurrency for a period of time.
At a later date you transferred the cryptocurrency to your family member's cryptocurrency account which they had since opened for themselves as they wished to be able to have direct control of their own holdings.
You received no consideration or benefits for purchasing and holding the cryptocurrency on your family member's behalf.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 106-50