Blockchain Australia has today released a report on the taxation of Initial Coin Offerings.
The report, “Australia’s Blockchain Future – Recommendations for the Taxation of Initial Coin Offerings” was prepared in conjunction with the RMIT Blockchain Innovation Hub and examines the taxation treatment of funds raised through an Initial Coin Offering in thirteen countries around the world in comparison to Australia. It concludes that the Australian tax regulation of ICOs is not fit for purpose and will result in Australian blockchain companies failing to thrive or electing to move their business offshore.
Blockchain Australia CEO, Nicholas Giurietto, said “we recommend that the proceeds from the issuance of tokens in an ICO should be considered ‘not assessable’ for income tax purposes, which is equivalent to the treatment of companies in respect of the proceeds of a capital raise”.
Blockchain Australia has provided the report to the Federal Government as it develops both its National Blockchain Roadmap and Fintech Roadmap strategies.