The Australian Court is classified as money, and it can lead to $ 640 million of tax recovered amounts

• The rules of the Australian judge must be treated with Bitcoin as money, not one of the taxable assets.
• The decision that continues the ATO contract to impose taxes on the encrypted currency.
• According to a tax lawyer, if the decision is adhered to, the number of potential recovery amounts may be 640 million dollars.

A Australia judge decided that Bitcoin should be treated as money instead of taxable assets, which may significantly change the coded currency tax environment in the country. The decision may lead to capital profit tax revenues (CGT) in excess of 640 million dollars for bitcoin transactions.

May 19 has resulted in a criminal case involved in the Federal Police Officer William Whitley, who was accused of stealing 81.6 Bitcoin in 2019, according to Australian financial review (AFR). When stolen, the assets were estimated at about $ 492,000. Today, these same symbols will be worth more than $ 13 million at current market prices.

He has resolutionThe Victoria Michael Ocunil judge concluded that Bitcoin is a kind of money, not property. The judge likened the digital assets of Australian dollars instead of comparing them to assets such as stocks, gold or foreign currency.

This interpretation can determine a legal precedent that places bitcoin transactions outside the scope of the current CGT system in Australia, with long -term effects on encryption investors and Australian tax system.

The ruling challenges are the tax guidance contract

Adrian Cartland’s tax lawyer told AFR that the ruling “fully raises” the long position of the Australian Tax Office (ATO) on encrypted currency taxes.

Crossed currency assets have been classified as CGT assets by ATO since 2014, which means that users must pay the tax when sold or traded. This framework was the basis for imposing taxes on encrypted currency transactions in Australia for more than a decade. The last judgment challenged this approach by recognizing the critical nature of Bitcoin rather than treating it as property, and perhaps its exemption from CGT completely.

Cartland calculates that the taxpayer of taxpayers who previously paid CGT on Bitcoin transactions could reach about one billion dollars ($ 640 million) if the decision is supported after any possible challenges.

However, ATO did not check these numbers, claiming that there are no formal expectations for the amount of possible return if the tax case is modified in Australia from Bitcoin.