Interest in cryptoassets and cryptocurrencies is increasing among businesses and hobbyists alike. The taxation of cryptoassets in New Zealand remains problematic. In many instances cryptoassets are developing faster than revenue agencies can issue guidance. 

Chartered Accountants Australia and New Zealand have recently recommended a comprehensive taxation framework is needed in our submissions to Inland Revenue.

As part of our feedback to the  Finance and Expenditure Select Committee’s Inquiry into the current and future nature, impact, and risks of cryptocurrencies we outline:

• the current guidance and approach to cryptocurrency taxation,
• recent Government action,
• details of a comprehensive solution, and
• recent feedback from our Members.

In this submission, we refer to “cryptocurrency” and “cryptoassets” interchangeably to refer to cryptographically secured digital representations of value that can be transferred, stored or traded electronically and use some form of distributed ledger technology (such as blockchain).