CA ANZ provided feedback on this draft ruling which follows two draft Public Rulings recently consulted on: “PUB00344: Income tax – salary and wages paid in cryptocurrency” and “PUB00344: Income tax – bonuses paid in cryptocurrency”. It considers a further situation in which an employee could receive cryptocurrency in connection with their employment.
One key issue from the previous Issues Paper was the existence of a valid salary sacrifice. We agree with the decision to limit the rulings to the situation where there is a valid salary sacrifice. This of course leave open the question as to the treatment where there is not a valid salary sacrifice. We assume this topic will be addressed in a later public statement.
In our view the decision to subject cryptocurrency payments, which have characteristics akin to currency to the PAYE rules should assist employer payroll compliance.
Members are able to make a submission on this item before 2 July 2019 by emailing email@example.com