Ireland has outlined that the various companies based in the country relying upon digital currency in undertaking transactions, will be subjected to normal tax rules. A number of cryptocurrency focused businesses have lately been raising concerns and queries and that might have contributed to the Irish Revenue Commissioners making the pronouncement.
Eliminating the confusion surrounding the matter
The tax office has been rather emphatic on the great need for assistive clarification since that was what it would take to eliminate any sort of uncertainty and confusion among the large number of tax payers.
Ireland happens to be one among quite a significant number of countries that have been making efforts to grasp the know-how of cryptocurrency. The major challenge that pops up is on ways to weave the existing tax structure in a seamless manner around the Group of 20 (G20) and digital currency.
Latest developments
A Dublin-based tax partner at law firm Arthur Cox, Caroline Devlin, outlined that despite the fact that cryptpcurrencies weren’t for everyone, their popularity kept growing. He stated the ICOs pulled along in a wide range of presentations. The common one is the utility payment tokens, in which case one handles the various tax issues separately.
The Irish Revenue Commissioner has said that he has no regrets over coming up with guidelines in the form of a manual to govern matters to do with the taxation of cryptpcurrencies. According to him, the manual attracted quite a huge deal of the attention of the traders as well as the holders of cryptocurrency. He has send out a word of advice to those persons dealing in crypto and he has also reminded all their tax advisors to stay updated on the most recent guidelines’.
The introduction of an eBrief dictating the way the “normal tax rules” applied to the large volumes of transactions involving cryptocurrencies is a progressive move. However, there will be need to align to the law and the relevant legislations when it comes to making a proper determination of the correct tax treatment. Each one needs to be scrutinized on the basis of its individual circumstances and facts as well.
