Sydney (10th of June, 2014) In breaking news, the ATO will shortly be releasing a ruling on how it will treat Bitcoin transactions for tax and accounting purposes. The announcement has been greeted with enthusiasm by businesses working with the digital currency. At present, the uncertainty whether Bitcoin is in fact a currency or a good, places question marks around the future of its usage. The ATO ruling will play a pivotal role in defining Bitcoin’s role and with it, the way businesses and consumers trade online.
LegalVision became the first Australian law firm to accept payment using the virtual currency in February 2014. CEO Lachlan McKnight has been waiting to see how the Bitcoin payments he’s accepting will be treated for tax purposes: “It will be great to finally know where we stand from a tax point of view” he notes. “We’ve been taking payments in Bitcoin for a few months now, and we’re unclear on how the payments should be treated”.
LegalVision’s tech customers are also keen to know where they stand. “Our customers are at the forefront of innovation; they want to use Bitcoin because it’s effective, truly international and flexible. It’s vital that they know how to deal with Bitcoin from an accounting perspective” comments McKnight.
Cutting edge, cloud-based portfolio management software provider Sharesight are also looking forward to getting some certainty. “We’ve been considering tracking Bitcoin as an investment currency.” notes Doug Morris, General Manager. “Some of our more avant-garde clients are asking for it, and we’d be delighted to provide the service, but we need to be certain how the ATO will treat Bitcoin investments for tax purposes”.
McKnight and Morris both expect the ATO to decide that Bitcoin will be treated as money, rather than goods. If the former decision is made they both expect Bitcoin use to grow dramatically.
Mr. Lachlan McKnight
tel: 1300 544 755
Mr. Doug Morris