Taxing Digital Assets 101

Date: 20/04/2023

Host: Kevin Whitmore, Business Innovation Advisor at Callaghan Innovation

Guests: Rachael Gemming, Associate Director - Tax, EY, Andrew Evison, Technical Specialist, Inland Revenue, Will Edmonds, Senior Policy Advisor, Inland Revenue

Video Length: 1:21:21

Transcript

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[00:00:00] Kevin - Welcome & Introduction

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[00:01:50] Rachael Introduction

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[00:02:46] Andrew introduction

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[00:04:10] How can the Web3 community approach tax certainty?

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[00:07:46] Cryptoasset portfolio & application: then and now

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[00:10:44] Taxing cryptoassets - Introduction

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[00:15:19] What are cryptoassets?

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[00:17:48] How is personal property taxed - the sections

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[00:21:34] What is a disposal?

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[00:24:13] Income stream from crypto assets

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[00:28:11] Walkthrough of IRD cryptoasset website content

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[00:31:57] Cryptoasset income

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[00:35:47] Cryptoasset losses

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[00:39:39] Decentralised finance

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[00:42:46] Will Edmonds Intro - Crypto from a tax policy perspective

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[00:45:07] Tax-related law changes affecting crypto assets to date

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[00:50:57] Upcoming tax-related law changes affecting cryptoassets

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[00:52:50] Emerging issues/future tax policy priorities?

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[00:57:04] Rachael - Final Thoughts

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[01:02:19] Web3 founders should be aware of broader tax opportunities

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[01:05:25] Wrap up of formal 1hr session

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[01:06:32] Q1: What is the process for determining whether a crypto asset becomes a currency?

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[01:09:57] Q2: If a DAO is focused on building public goods, should it be double taxed?

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[01:11:10] Comment regarding crypto as being an excluded financial arrangement in legislation and IRD guidance on the matter

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[01:14:48] Q3: What advice would you give to people playing/tinkering with Web3 such as Bitcoin ATMs and what should they be aware of in terms of tax implications?

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[01:17:49] Final comments, follow-up sessions and keeping in touch