Ellie Williams’ Post

IRD honing-in on Crypto activity   The IRD recently released a statement on ramping up audit activity in the crypto space. Please see our short summary https://lnkd.in/g_QEBi_3 on tax issues surrounding crypto.   How we assisted a client through a crypto disclosure with Inland Revenue.   We worked with a client who undertook crypto as a hobby outside of their main employment. The crypto market had flourished, our client rode the wave and over a period traded significantly. We looked at the entire portfolio and transactions, provided our view on the tax treatment in respective periods and engaged Inland Revenue’s crypto team which led to a Voluntary Disclosure. Our client was very pleased with the outcome as it provided clarity to their tax position, saved them a significant amount on penalties and interest cost. If you would like to have a chat on your crypto activity, please reach out to Serjit S. or Michelle Turner. Mike Atkinson; Aaron Wallace; Matthew Bellingham; Niketa Naran; Ellie Williams; Jody Gilfillan; Rachel Bradburn; Kelvin Sam; Nick Savill

How the world has changed and we must now include in our wider understanding and knowledge bank.

Most of us are now aware of Crypto assets and some of us will no doubt own and deal in Crypto. With more than 25,000 crypto assets circulating in the marketplace, the tax authorities including NZ IRD are now paying more and more attention to the Crypto space. If you have Crypto assets, your taxable income might be through a variety of activities including mining crypto, staking crypto, lending crypto, selling or exchanging crypto or getting paid in crypto. Whether the transaction is taxable will depend on what activities you undertake. In early July 2024, IRD issued a warning about investigating taxpayers that hold Crypto. IRD have already identified crypto asset users in NZ who are estimated as undertaking around 7 million transactions with a value of $7.8 billion. In addition to this, the recent (August 2024) Tax Bill sets out the proposed implementation of OECD’s new crypto-asset reporting framework (“CARF”) in NZ. Under the CARF, New Zealand-based crypto-asset service providers will need to collect and report information to IRD. This will be effective from 1 April 2026 with the first reporting due by 30 June 2027. Information on these transactions and users will then by shared with other tax authorities. Morale of the story is that if you have any crypto assets and haven’t looked into how these will affect your tax position then we highly recommend that you come and talk to your PKF Kendons advisor. The sooner you establish the correct treatment and advise the IRD (where required), the less likely that you will be penalised in the future. We think that it’s not a matter of if, it’s a matter of when, IRD will come knocking. (Disclaimer: this is generalised advice – professional advice should be sought for individual circumstances). #pkfkendons #taxquestions #Crypto

💰 Digital Assets in the Tax Spotlight💰 🌍 With the global digital asset market now surpassing $2 trillion, tax authorities worldwide are paying closer attention to this expanding asset class. As regulations evolve, the highly liquid, and often cross-border nature of digital assets poses unique challenges. 🎮 UK tax expert Oktavia Weidmann highlights a major generational shift: younger investors are drawn to non-traditional assets like crypto, NFTs, and in-game items (an industry now valued at $50 billion annually). Traditional assets like shares, bonds, and real estate seem less appealing for this demographic. What are your thoughts on this trend? Are we witnessing a redefinition of wealth? 📈 💼 At Provenance, we specialize in AML/CFT/CPF compliance for digital assets, helping exchanges, CASPs/VASPs, and industry participants navigate essential regulatory requirements in this dynamic market.  As the digital asset landscape continues to grow, we are here to ensure compliance and support sustainable industry growth. 📖 Read the full Moneyweb article here: https://lnkd.in/dbMTiN2M #DigitalAssets #CryptoTax #CryptoCompliance #NFTs #CryptoRegulation

#News #crypto #ReportingFramework #Swiss Swiss Leaders Aim to Implement Global Crypto Reporting Framework: Switzerland’s Federal Council proposes adopting global standards for crypto tax reporting through a public consultation to ensure parity with traditional assets and enhance tax transparency. In an effort to “ensure equal treatment” with conventional assets, Switzerland’s highest authority has issued a public consultation regarding its intentions to adopt global standards for crypto tax reporting. The […] The post Swiss Leaders Aim to Implement Global Crypto Reporting Framework appeared first on Coinscreed.

As cryptocurrencies gain momentum, investors must understand the tax implications associated with trading and holding these digital assets. The rules surrounding crypto taxes can be complex, and failure to comply can result in penalties and legal issues. Cryptocurrency and Taxable Events The Internal Revenue Service (IRS) treats cryptocurrencies as property for tax purposes, similar to stocks or real estate. Any sale, exchange, or use of cryptocurrency can potentially trigger a taxable event. Common scenarios that may lead to tax liabilities include: 🔹 Selling crypto for fiat currency 🔹 Using crypto to purchase goods or services 🔹 Trading one crypto for another 🔹 Receiving crypto as payment 🔹 Earning crypto through mining or staking Capital Gains and Losses When you sell or exchange cryptocurrency at a profit, you will owe capital gains tax on the difference between your sale proceeds and your cost basis (the amount you initially paid for the asset). If you sell at a loss, you may be able to claim a capital loss deduction. Short-term vs. Long-term Gains The holding period determines whether your gains are taxed at short-term or long-term rates. Short-term gains (assets held for one year or less) are taxed as ordinary income, while long-term gains (assets held for more than one year) are typically taxed at lower rates. Tax Reporting and Record-Keeping Keeping accurate records of all your cryptocurrency transactions is essential for proper tax reporting. This includes buy and sell dates, purchase prices, sale proceeds, and any associated fees. Many exchanges provide tax documentation to assist users in tracking transactions. Taxpayers must report their crypto holdings and transactions when filing their annual tax return. Potential Penalties and Audits Failing to report cryptocurrency transactions or misreporting gains and losses can result in penalties, interest charges, and potential audits from the IRS. As cryptocurrencies gain regulatory attention, the risk of audits for crypto investors increases. It's crucial to consult with a qualified tax professional to ensure compliance with tax laws and regulations surrounding cryptocurrencies. Proper tax planning and record-keeping are vital for navigating the complexities of crypto investing while remaining compliant. The tax landscape surrounding cryptocurrencies is rapidly evolving, and investors should stay informed about any changes in regulations or guidance from tax authorities.

Cryptocurrencies have gained immense popularity in recent years, attracting both seasoned investors and newcomers to the world of DeFi (Decentralised Finance). As the adoption of digital currencies increases, so does the need for clear and concise tax regulations. This is why our team has put together an informative guide to help you understand crypto tax regulations in the UK. #cryptotax #cryptoaccountant #cryptorulesuk https://lnkd.in/ecUHFMzb

**Budget 2024: Crypto Tax Regulations Unchanged – Impact and Opportunities for Business Owners** The announcement of Budget 2024 came with a key decision to keep cryptocurrency tax regulations unchanged. Understanding its implications is vital for investors, traders, and business owners in the cryptocurrency market. Here are the main points: 1. **Market Stability**: - Unaltered tax regulations offer market stability, allowing investors to proceed without reevaluating their strategies. 2. **Clarity for Investors**: - Consistent tax policies facilitate clear financial planning, enabling better decision-making, especially for new entrants. 3. **Potential for Market Growth**: - Stable regulations can attract more market participants, leading to increased trading volumes and possible market appreciation. 4. **Lack of Incentives for Long-Term Holding**: - The current tax framework does not encourage long-term investment, possibly promoting short-term trading over holding assets. ### Pros and Cons **Pros**: - Continues the current tax framework, avoiding the need for immediate adjustments. - Offers a stable environment for long-term market participation. - Avoids confusion and administrative burdens linked to new tax regulations. **Cons**: - Maintains the existing tax burden, perceived by some as high and market-restrictive. - No new incentives for long-term investments in crypto. - Missed opportunities to modernize and align with global tax trends. ### Opportunities 1. **Leveraging Tech Solutions**: - Use advanced financial software to ensure compliance and minimize tax liabilities. 2. **Adopting Long-Term Strategies**: - Focus on long-term holding strategies can help build a strong portfolio in a stable regulatory environment. 3. **Exploring Global Markets**: - Diversify by exploring international markets with potentially more favorable tax regulations. 4. **Engaging with Tax Professionals**: - Consult with tax advisors for personalized strategies to optimize tax savings. As the crypto tax landscape remains unchanged, it's crucial to navigate it wisely. For tailored strategies and professional guidance in optimizing your tax liabilities, consider reaching out to **Together CFO** or **setting up a call CONNECT**.

Are you an Indian crypto investor or trader navigating the complexities of crypto taxation? Look no further! "Mastering Advanced Tax: A Comprehensive Guide for Indian Crypto Taxpayers" is your go-to YouTube series designed to simplify the intricacies of cryptocurrency taxation in India. Join us as we dive deep into the latest tax regulations, legal frameworks, and practical tips to ensure you're fully compliant while optimizing your tax obligations. Our episodes cover a wide range of topics, including: Understanding the Basics: Get to grips with the fundamentals of cryptocurrency taxation in India, including definitions, tax brackets, and the distinction between short-term and long-term capital gains. Advanced Tax Strategies: Learn about advanced tax planning strategies tailored for crypto investors, timing of disposals, and the treatment of crypto-to-crypto trades. Legal Compliance: Stay updated with the latest guidelines from the Income Tax Department and understand the legalities surrounding crypto transactions to avoid penalties and audits. Taxation on Crypto Mining and Staking: Explore the tax implications of mining, staking, and other forms of passive income generation in the crypto ecosystem. Expert Interviews: Gain insights from tax experts, seasoned crypto investors, and legal advisors who share their knowledge and experiences in the crypto taxation space. Q&A Sessions: Have your burning questions answered in our interactive Q&A sessions where we address common queries and provide personalized advice. Whether you're a seasoned investor or new to the crypto world, our series is designed to empower you with the knowledge you need to navigate the tax landscape confidently. Subscribe to our channel, hit the bell icon for notifications, and take the first step towards mastering your crypto taxes today! Don't forget to like, share, and comment on our videos with your thoughts and any topics you'd like us to cover in future episodes. Happy investing, and let's demystify crypto taxes together! Disclaimer: This content is for informational and educational purposes only and should not be construed as professional financial or legal advice. Always consult with a professional tax advisor or lawyer for matters pertaining to your specific situation.