Australian Law Firm Criticizes DeFi Tax Guidelines
Australian law firm Cadena Legal has criticized the new decentralized finance (DeFi) guidelines on crypto tax issued by the Australian Tax Office, referring to them as “toilet paper.” The firm’s blog post argues that the non-binding web guidance provided by the tax office is confusing, and suggests that investors instead look to foreign court cases, academic opinions, and legislation itself for guidance.
ATO’s Non-Binding Guidance
The Australian Tax Office published non-binding guidance on November 9 that could impact how investors in DeFi firms report their taxes. The guidance has sparked confusion and concern within the Australian crypto community, with Cadena Legal advising individuals to ignore it and seek their own advice instead. However, founder Harrison Dell believes that a public ruling could eventually resolve the issue, although this may take some time.
Hot Take: Needed Resolution for Crypto Tax
Crypto taxation remains a complex and evolving topic around the world. While governments attempt to provide guidance and regulation, it is crucial to ensure that such guidelines are clear and relevant. The Australian Tax Office’s non-binding web guidance on DeFi tax has faced criticism and confusion, leading to calls for a better resolution. Investors in DeFi firms should consider seeking alternative sources of guidance and staying up to date with any potential changes in legislation to navigate the complexities of cryptocurrency taxation.
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