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Crypto-currency Taxation INTRODUCTION

   

Added on  2020-07-23

9 Pages2695 Words436 Views
Crypto-currencyTaxation

Table of ContentsINTRODUCTION...........................................................................................................................1Main Body.......................................................................................................................................1A) What is Crypto-currency and how does it work................................................................1B) How is Crypto-currency taxed within Australia at the moment........................................2C) Revenue authorities doing to going forward towards correctly taxed within own regions3D) Will the measures taken by tax authorities is successful towards preventing crypto-currencies................................................................................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6

INTRODUCTIONCrypto-currency taxation is now becoming a trend for local people and communities inorder to make profits. The digital market is taking significant place in Australia and the uses ofCrypto-currency is enhancing day by day. The report will cover meaning of Crypto-currency andhow does it work. How crypto-currency taxed in Australia will be discussed in this reportsupported with ATO (Australian Tax Office). Work of revenue authorities to ensure correctmeasurement and management of tax within regions will be covered in this report. Somerecommendations also provided in this report with personal views on measures being taken bythe tax authorities to ensure that they catch all the taxpayers partaking in the Crypto-currencyworld.Main BodyA) What is Crypto-currency and how does it workCrypto-currency: Crypto-currency is a type of digital currency that uses cryptography forsecurity and anti-counterfeiting measures. Public and private keys are often used to transferCrypto-currency between individuals. As a counter-culture movement that is often connected tocypher-punks, Crypto-currency is essentially a fiat currency (Campenon, 2016). It can be alsodescribed as a digital asset which is designed to work as medium of exchange that use to securetransaction of cryptography in order to manage and control additional unit creations and also toverify transfer of assets such as Bit-coins which are created in 2009 effectively and efficiently. It is quite often that most of people are now become familiar with Crypto-currency butmost of the people also don't know what is it and how does it works for transactions. Crypto-currency is a digital currency used to secure transactions effectively (Thimmesch, 2015). Bit-coin and Ethereum are the two popular crypto-currencies today. The currency can be transferredfrom peer to peer without any help of financial institutions, banks or government effectively.Miners are responsible for managing the record of transactions in block chain that helps toprevent double spending of crypto-currencies efficiently. The crypto-currencies are stored indigital wallets and exists on block chain. An internet connection is required to use and accesssuch wallets from anywhere in the world (Chohan, 2018). Transaction begins: Transaction through bit-coin, generally people went to the online exchangein order to convert their currencies for bit-coins and also stores them in a wallet which is also1

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