Australia reiterated termination bitcoin double taxation adjustment of consumption tax will bitcoin as a currency

Australia reiterated termination bitcoin double taxation adjustment of consumption tax will bitcoin as a currency

In order to investigate the response to the Productivity Commission, the Australian government has promised to double taxation termination bitcoin.

Since Australian finance minister Kuskot Morrison (ScottMorrison) in Australia’s commitment to change the goods and services tax (GST) law, there have been more than a year. However, the result of the action is not so satisfactory, but when pressed, the Australian government has made a commitment to stop bitcoin double taxation.

Foreign media recently reported that the Australian government efforts to change the double taxation of consumption tax to stop bitcoin. Although this problem last year is a priority, but according to the Australian financial technology industry reported that its priority seems to decline this year.

However, Australia small business minister Michael McCormack (McCormackMP) a report released on Thursday may change the priority.

The 37 page report provides an overview of the Australian government launched on the Productivity Commission “commercial placement, transfer and close investigation” response. The report shows:

“The Productivity Commission found in a variety of ways to develop new business restrictions bitcoin blockchain. Governments at all levels shall determine and reform the intentionally or unintentionally anti competitive restrictions.”

The report pointed out that these anti competitive restrictions can hinder the industry’s new entrants, the existing enterprises hinder business expansion, or accelerate their collapse”.

The government supported the abolition of bitcoin double taxation proposals

The Productivity Commission proposed list of recommendations to the government in four aspects. One of the recommendations of the Committee is:

“Digital currency (bitcoin) should be regarded as the consumption tax of financial resources. This will require the definition of the scope of the new currency to include the new tax system in 1999 “(goods and services tax law”) (Cth) 195, and the “consumption tax regulations” No. 95 digital currency.”

“The government supports the proposal” is on the above statement to respond. The report said: “the government agreed to further clarify, consumers buy goods or services in the use of bitcoin, the consumption tax shall be paid two times.”

Modify the consumption tax law is a priority in financial technology

In March this year, the Australian government reaffirmed the double taxation termination bitcoin. The government has issued the “Australian financial statement” science and technology support, to solve the double taxation of bitcoin.

It has also set up the financial science and Technology Advisory Group, “directly to the financial supervisor on important issues of the Australian financial technology industry to provide advice, such as the identification of potential future reform areas, and make sure to consider the specific priority industries in the implementation of government policies.”

An overview of the report of the financial science and technology one of the priorities is to modify the 1999 “consumption tax”, will be regarded as bitcoin currency.

The government has acknowledged this suggestion, and put forward the “anti money laundering / combating terrorism laws should be applied to the digital currency”.

The report on Thursday confirmed: “the government is working with the financial science and Technology Advisory Group, reform the current consumption tax to digital currency scheme.” However, “any change in bitcoin consumption tax treatment should comply with the formal state and territory law, summary report.

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