Myth one: You don't have to pay tax on your digital assets - busted
Myth two: You pay tax on gains, but cannot offset any losses - busted
Myth three: It's too complicated to pay tax on digital assets - busted
Giving to Caesar, what is due to Caesar, can be rather tough.
Perhaps, some attracted to investing in digital assets like Bitcoin are attracted as it's 'outside the system' characteristics.
Added to this dilemma has been that the tax rules are a bit ambiguous and likely need time to be fine-tuned. Last year the IRD requested information from crypto on-ramps like Easy Crypto, "so we can work out how best to help taxpayers meet their income tax obligations"
So, paying tax on something outside the matrix is not natural impulse for some (I'd like to suggest you need to make this natural fyi!), the rules are clearer, but still could do with further refinement, and the last issue is that technically, it's a bit hard to collect the information required for tax compliance.
Introducing Taxoshi - something that's going to make compliance with tax so much easier. Craig MacGregor, the founder of Taxoshi, is my guest today.
We only talk about tax 20% of the time don't worry!
Three things for further investigation today:
- Visit taxoshi.com to use the service, input NZEI into the checkout to get a 10% discount.
- Check out the guidance note issued by the IRD on this topic
- I recommend Easy Crypto for any Crypto buyer based in NZ (as mentioned in this show)
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