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DEFI Disposal & Acquisition Concepts

I recently presented at the Chartered Accountants Australia New Zealand (CAANZ) tax conference in Christchurch about cryptocurrency tax. The presentation included disposal and acquisition concepts of cryptocurrency DEFI tax which are outlined in this article. Some cryptocurrency investors will not…

Implications of Cryptocurrency as Excepted Financial Arrangements

In March 2022, IRD released a new bill that classifies cryptocurrency as excepted financial arrangements (EFA). This was the same bill that removed GST from most cryptocurrencies and is retrospectively applied to 1 January 2009. The classification of cryptocurrencies as…

IRD Guidance on Airdrops

This month, IRD finally published guidance regarding the taxable treatment of airdrops. What is an airdrop? An airdrop is a distribution of tokens without compensation (i.e., for free), generally with a view to increasing awareness of a new token, particularly…

Bulletproofing Your Cryptocurrency Record Keeping

Cryptocurrency trading can be like an emotional rollercoaster. When we present financial statements to clients, they are surprised to see their trading volume. It’s nearly always higher than they expected. They have transacted with cryptocurrency going back and forth, in…

Hidden Complexities of Buying Cryptocurrency for Someone Else

Sometimes, people might buy cryptocurrency on behalf of another. A friend or family member may say, "Hey, here's $10,000. Can you get me some too?" At the time, it doesn't seem like a big deal. But come tax time, it…

2022 End of Financial Year Cryptocurrency Tax Checklist

The end of the financial year is 31 March 2022. This article outlines what information we need to prepare your financial statements. We recommend you action this today! It will save you time, costs, and unnecessary complexities. If you only do one…