INTHEBLACK November 2021 - Magazine - Page 30
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records as they go, saving copies of receipts and even
using spreadsheets or crypto accounting software.
SEEKING DIGITAL CLARITY
The taxation of cryptocurrency transactions in
Australia is based on existing taxation law, which
is consistent with countries such as the US,
Canada, the UK and European countries that have
not introduced cryptocurrency-specific taxation
Australia is supporting work underway at
the Organisation for Economic Co-operation
and Development to develop a tax transparency
framework for crypto assets and digital money
The proposed framework seeks to address the
risks associated with the lack of transparency
surrounding these products.
Joni Pirovich, special counsel on tax, blockchain
and digital assets at law firm Mills Oakley, says
there needs to be a taxonomy of different types of
digital assets and what the high-level legal and tax
considerations are for both issuers and taxpayers.
“We think that is the immediate approach required
and that resources should be dedicated to that
task and continuing that task, because the space is
emerging quickly,” she says.
30 ITB November 2021
Pirovich recently led a submission on behalf of
the Digital Law Association to the Senate Select
Committee on Australia as a Technology and
“It is far beyond accountants, lawyers and financial
planners to stay informed about this world.
“I’m a specialist and spend an exorbitant amount of time
keeping up to date with what’s happening,” Pirovich says.
“If there was a common resource that lawyers and
accountants could access that’s been prepared through
a multi-agency working group that was contributed
to by specialists in industry, I think that will actually
help bring up the quality of accounting and tax advice
and compliance across Australia.”
Bitcoin came first, but there are now hundreds of
cryptocurrency assets around the world that are
actively traded by investors.
The job of regulating them in Australia from a
product perspective falls squarely into the realm
of the Australian Securities and Investments
“Essentially, if a crypto asset has features that look
very similar to the features of a managed investment
scheme, it is a financial product,” says Hema Raman,
senior lawyer and crypto asset coordinator at ASIC.
to a CPA Australia
podcast on taxing