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…

Claiming Cryptocurrency Tax Losses to 31 March 2022

The 2022 financial year has had wild price fluctuations. We all experienced record price highs before Christmas, and then a significant pullback in prices in early 2022. No doubt, some taxpayers have traded at the top of the market, triggering…

Benefits of Frequent Financial Reporting for your Cryptocurrency Activity

We’ve been preparing quarterly financial reports for several clients over the past 12 months and have found the reports and process extremely helpful.  The key benefits are: Addressing reconciliation issues during the year in small chunks rather than once at the end…

How Trading Cryptocurrency Affects Profitability – Part 2 of 2

This is part 2 of our series of articles 'how a trade can go from bad to worse'. We recommend reading part 1 which outlines this core concept, and this latest article builds on the foundational principle. All tokens of…

How a trade can go from bad to worse – tax implications of making cryptocurrency trades – Part 1 of 2

This article outlines how a loss-making crypto trade may result in a combined profit (and subsequent tax to pay). Yes, this may seem strange, almost unfair, and the entire cryptocurrency portfolio including historical cost basis needs to be considered. We…