CA ANZ, together with other professional bodies, have lodged a joint submission to Treasury in relation to the Token Mapping Consultation Paper for the crypto sector.

The Joint Bodies broadly support the Government’s token mapping exercise to align token activities to financial services.  However, the exercise may not result in the appropriate outcome from a tax perspective in all instances. 

We consider that a token mapping exercise should also map the tax outcomes to token activities. Where tax outcomes differ from the financial services outcomes under current tax laws, the issues and relevant provisions should be clearly identified so that any necessary reforms can then be progressed.    

The Joint Bodies consider that any potential design of a bespoke ‘crypto asset’ taxonomy should be tax neutral and not imply or result in an inequitable tax outcome.  In order to achieve this, tax should be considered alongside any legislative introduction of the taxonomy.  Further, noting that this is a constantly evolving space, the creation of any taxonomy should be transferrable across purposes.