CA ANZ recently provided comments on draft issue paper IRRUIP14 which examines the tax treatment of cryptoassets received from forks and airdrops. Overall, the draft is well researched and comprehensive.

However, it highlights the difficulty of trying to selectively apply traditional tax frameworks to cryptoassets on a piecemeal basis. The draft highlights many issues and sets out a useful discussion as to how the tax rules could apply in different scenarios.

We have previously stated that Government should establish a comprehensive framework for taxing cryptoassets based on current taxing provisions. We continue to believe that would be the most appropriate way to proceed. In the absence of the above we recommend that Government establish a taxation method that allows taxpayers to return tax on the increase in value of cryptoassets annually on an unrealised basis.