CA ANZ recently consulted on PUB00344: Income Tax – Employer issued cryptocurrency provided to an employee.
We agree with the conclusions reached in the draft, and believe Government also needs to consider this issue together with other tax issues involving cryptocurrencies to ensure that there is a consistent framework.
We agree that it is becoming more common for employers to pay employees in cryptocurrency and that it is very common for those undertaking an Initial Coin Offering (ICO) to offer some coin to employees. We are not sure how common this is in New Zealand but believe that this situation will occur at some point, if it has not already. Thus, the draft is timely and the ruling will be welcomed.