A recent Australian court ruling may lead to $640 million in tax refunds for Bitcoin transactions. Judge Michael O'Connell ruled that Bitcoin should be classified as money rather than a taxable asset in a case involving federal officer William Wheatley, who was charged with stealing Bitcoin. This interpretation potentially exempts Bitcoin from capital gains tax (CGT), contradicting the Australian Tax Office's long-standing position since 2014 that treats crypto assets as CGT assets. Tax lawyer Adrian Cartland noted that if the ruling is upheld, it could result in significant tax refunds, although the ATO has not confirmed any specific figures. The case challenges the established framework for taxing cryptocurrency in Australia, suggesting Bitcoin operates more like currency in everyday transactions.

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