Australian Treasury: Bitcoin a Threat to Tax Collection

In a new report, the Australian government has cited bitcoin as a potential threat to its tax collection efforts.

Mar 30, 2015 at 8:26 p.m. UTC
Updated Sep 11, 2021 at 11:37 a.m. UTC

The Australian Department of the Treasury is claiming bitcoin and digital currencies are a potential threat to its tax collection efforts.

, the government agency outlines areas in which it hopes to change the structure of its tax revenue system, citing the emergence of new financial technologies, including bitcoin and other digital currencies, as challenges it has yet to adapt to.

The report notes:

“New ways of transacting, including cryptocurrencies such as bitcoin, were not contemplated when the current tax system was designed.”

The specific risks, the paper continued, involve the ability of entities to shift or obscure liabilities to achieve a more favorable rate by hiding the existence of assets from tax authorities. The report does not elaborate on how the utilization of bitcoin to avoid tax liabilities might be prevented.

The study suggests that the Australian government is seeking ways to at least stunt the trend among multinational corporations that use opaque legal strategies to lower their tax liabilities.

Australia has held a number of bitcoin-related hearings in the past year, eliciting interest from both lawmakers and law enforcement officials.

Concept of businessman image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Bitcoin Rises to $30K; Resistance at $35K

BTC is on track to register a positive momentum signal on the daily chart.

BTC is on track to register a positive momentum signal on the daily chart.

2
What Web 3 Means to Andreessen Horowitz

And what the venture capital firm's "State of Crypto" report means for you.

And what the venture capital firm's "State of Crypto" report means for you.

3
Nansen Acquires DeFi Portfolio Tracker Ape Board for More Than $10M

Nansen plans to combine its analytics with Ape Board's portfolio tracking to make the "definitive information super app of Web 3."

Nansen plans to combine its analytics with Ape Board's portfolio tracking to make the "definitive information super app of Web 3."

4
Terraform's Legal Team Quits Amid Terra Stablecoin Fallout

Marc Goldich, Lawrence Florio and Noah Axler left the Terra ecosystem backer in May, according to their LinkedIn profiles.

Marc Goldich, Lawrence Florio and Noah Axler left the Terra ecosystem backer in May, according to their LinkedIn profiles.