The scope of this letter is to given advice

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

TAXATION LAW1
Table of Contents
Part A: Letter of Advice.............................................................................................................2
Part B:.........................................................................................................................................4
References:.................................................................................................................................6

TAXATION LAW2
Part A: Letter of Advice
Private & Confidential
Knight Mere Pty Ltd
Mr Alex
45 Marine Drive
Turk Deli NSW 999
Dear Alex
In response to our recent conversation regarding the tax treatment of
“cryptocurrencies”, we request you to kindly read the below stated attached letter of advice.
Scope:
The scope of this letter is to given advice on the tax treatment of “cryptocurrencies”
and the probable effect if the taxpayer has a small portfolio of “cryptocurrencies”.
Summary of Advice:
If you are thinking of purchasing and selling the “cryptocurrencies” then it is time to
start thinking regarding its potential impact which it may have on filing tax return. If you
make a profit from trading in the “cryptocurrencies” then you are required to declare it in
your yearly tax return. Before understand tax consequences of “cryptocurrencies” at first you
must understand that cryptocurrency is referred as digital asset which involves encryption
techniques to regulate the additional units generation.
As ATO have announced that it is particularly targeting the traders of
“cryptocurrencies” it is necessary that you have a better understanding regarding the tax
treatment of your “cryptocurrencies” trading. Accordingly, the profit derived from
“cryptocurrency” is ascertained in AUD amount when you decide to exchange your
cryptocurrency for fiat currency or into goods and service. For instance if you purchase or