Australian court ruling could spur $640M in Bitcoin tax refunds
A court in Australia ruled that Bitcoin should be classified as money rather than a taxable asset, potentially allowing for up to $640 million in capital gains tax (CGT) refunds on Bitcoin transactions. The decision emerged from a criminal case involving a federal police officer who stole Bitcoin in 2019. Judge Michael O’Connell stated that Bitcoin functions like Australian dollars, which could exempt it from the current CGT regime. Since 2014, the Australian Taxation Office (ATO) has treated cryptocurrencies as CGT assets, requiring taxes on their sale or exchange. The ruling challenges this classification, suggesting Bitcoin transactions may not incur tax consequences. If upheld, tax refunds could reach 1 billion Australian dollars, although the ATO has not confirmed potential refund amounts.
