Australian Court Ruling Could Lead to $640 Million in Bitcoin Tax Refunds

Odaily News A verdict in an Australian criminal case could lead to a $640 million Bitcoin tax refund. Victorian judge Michael O'Connell ruled in a theft case involving 81.6 Bitcoins (now worth about $13 million) that Bitcoin should be treated as currency rather than a taxable asset. The ruling directly challenges the Australian Taxation Office (ATO)'s position since 2014, which has classified cryptocurrencies as capital gains tax (CGT) assets. Tax lawyer Adrian Cartland pointed out that if the verdict is upheld on appeal, it could bring a total of A$1 billion (about $640 million) in tax refunds to Bitcoin traders. The ATO has not yet confirmed the specific amount of the refund. It is worth noting that the judge compared Bitcoin to the Australian dollar rather than assets such as stocks and gold in his ruling. This legal interpretation may exempt Bitcoin transactions from the current CGT system. The ATO previously stipulated that any disposal of Bitcoin (including exchange for fiat currency, trading other cryptocurrencies or purchasing goods) constitutes a CGT taxable event. (Cointelegraph)