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The Whatsnext Podcast

Last week, Tim featured on the #whatsnext podcast discussing cryptocurrency taxes.Luke (the host) and Tim completed their Chartered Accountant certificate of public practice together back in 2016.Ep 136 – Crypto & taxes (not boring) with Tim Doyle CA – Today Tim Doyle, another chartered accountant, joins Luke to share his journey with cryptocurrency and discuss what you need to be thinking about when buying crypto.Have a listen here, or on your favorite podcast platform....

Cryptocurrency Data Analyst

This is an exciting opportunity to join our team!Evans Doyle (ED) has been helping cryptocurrency investors meet their tax obligations since 2017. We are NZ’s leading cryptocurrency tax experts, and are at a very exciting stage of growth, consistently being oversubscribed with new customers. We service more than 400 cryptocurrency taxpayers with investments from $100k to $30m +, including the latest NFT projects, traders, and large cryptocurrency businesses.Now, we are looking for a Data Analy...

Cryptocurrency Tax – Collateral Finance Loans

We have recently updated this article in November 2022. Please view the most up to date article here.Cryptocurrency collateral finance loans are becoming increasingly popular. They allow an individual to maintain price exposure to token price fluctuations while providing additional capital (the loan) to utilize (how they choose).An individual deposits cryptocurrency into a contract or an online platform. In return, they receive a loan. Interest is charged on the loan, and the loan must be r...

Cryptocurrency Tax Webinar – Questions and Answers

Due to being at full capacity for consulting calls (until January 2022), we are hosting a Cryptocurrency Tax Questions and Answers Webinar.The webinar will be on Tuesday 7th December at 7pm. Register here.A webinar recording will be available to watch on our website if you cannot make the live event.The format of this webinar will be questions and answers. The webinar is an opportunity to ask us anything about cryptocurrency taxes, your situation, hypothetical or actual, our learnings,...

IRD Update: Excluding Cryptocurrency from GST

IRD first mentioned in 2017 that GST legislation has been in progress to remove GST from cryptocurrency. The Australia Tax Office (ATO) updated their legislation in 2017, and by the meetings and discussions we had with IRD, it sounded like a six-to-twelve-month process. However, four years on, here we are, and finally, IRD has spoken. The changes are positive.The time delays in providing certainty to cryptocurrency taxpayers give an insight into how IRD are under-resourced. They appear...

Foreign Tax Exemption – New Migrants and Returning New Zealanders

Are you moving to NZ with cryptocurrency?Do you want 4 years NZ tax exemption of foreign income after arriving in NZ?You may have a once in a lifetime opportunity to structure, plan, and utilize a temporary foreign tax exemption on cryptocurrency gains.There is a certain criterion you must meet to qualify as a transitional tax resident. Provided you qualify, your cryptocurrency activity (and gains) must fall into a specific part of the Income Tax Act.If you are a new migrant thinking about movin...

Free Cryptocurrency Tax Webinar – Q & A

Due to the Covid-19 lockdown and spare capacity (to be able to work from home), we have scheduled a free cryptocurrency tax webinar where we invite users to submit questions (live) and we will answer them.The webinar will be on Thursday 19th August at 7pm.We hope to answer many of the recent email enquiries that we have received and discuss some of the incorrect cryptocurrency tax positions published online. A recording of the webinar will also be available to watch on our website if you cannot ...

Earning Staking Rewards – Cryptocurrency Tax Treatment

This article outlines the income tax treatment of cryptocurrency staking income. It includes examples of how cryptocurrency staking rewards are taxed as well as disposing of the underlining crypto.Staking cryptocurrency is becoming more popular with specific providers such as Celsius or BlockFi paying users between 3- 12% pa. Users can choose which token to deposit (“stake”) to these platforms. Staking is also available on some exchanges (such as Binance or Kraken) for so...

How to create APIs for your cryptocurrency exchanges

We have updated our internal cryptocurrency accounting systems so we can receive a read only API (application programming interface) from you. This will include all your exchange trading history and import directly into our accounting system.Previously we have requested CSV files, downloaded from exchanges which included all trading history....

NZ Government launched cryptocurrency inquiry to understand benefits and risks

An inquiry into the nature, impact and risk of cryptocurrencies has been announced by Parliament’s Finance and Expenditure Committee. It will look into the nature and benefits of cryptocurrencies as well as the risks to both users and Aotearoa as a whole.Tim was recently interviewed by Newshub for his thoughts on the announcement of the review. While this is probably the largest media exposure of cryptocurrency tax, the content of the article does not contain much information to hodlers.At thi...

Podcast: How cryptocurrency will be taxed with Tim Doyle

Cryptocurrency was once a concept linked to the dark web, apparently untraceable and outside the purview of governments. Obviously, the creators of cryptocurrency never counted on the tenacity of the taxman. We talk to leading cryptocurrency tax consultant Tim Doyle about tax developments in the crypto space.This is a podcast where Tim was interviewed by Tax Management NZ about the tax developments in the crypto space. It is an overview of the cryptocurrency tax space (compared to our technical ...

How Trading Cryptocurrency Affects Profitability – Part 2 of 2

This is part 2 of our series of articles ‘how a trade can go from bad to worse’. We recommend reading part 1 which outlines this core concept, and this latest article builds on the foundational principle.All tokens of the same cryptocurrency are combined for inventory purposes.This article will be complex, however for a trader, especially in a bull market it is important to understand how profit is calculated.Having a separate legal entity (such as a company) for owning cryptocurre...

Why Is Cryptocurrency Taxable?

If you are purchasing cryptocurrency as a speculative investment to make money, you likely accept that any profits are taxable income. Likewise, if you are in the business of dealing in cryptocurrency you likely accept that business profits are taxable income (like other businesses). If you are purchasing cryptocurrency for other reasons, the proceeds from disposing cryptocurrency are still likely to be taxable income.This article explains why cryptocurrency gains are likely to be taxable on dis...

Accountant – Intermediate/Senior with an interest in Cryptocurrency

Company:        Evans Doyle LimitedLocation:          CambridgeType:                Full time,This is an exciting opportunity to join NZ leading cryptocurrency accounting firm.We service cryptocurrency taxpayers involved in multiple activities from $50k to $50m invested.Rapid growth in the business brings an opportunity for a motivated, dynami...

How a trade can go from bad to worse – tax implications of making cryptocurrency trades – Part 1 of 2

This article outlines how a loss-making crypto trade may result in a combined profit (and subsequent tax to pay). Yes, this may seem strange, almost unfair, and the entire cryptocurrency portfolio including historical cost basis needs to be considered.We have outlined an example below, where it appears John has lost money – buying 4,000 ABC tokens for $1 and then selling them at a loss of $0.50. However, the trading nature of cryptocurrency (selling one token for another), means that his prior...

2021 End of Financial Year Cryptocurrency Tax Checklist

The end of the financial year is 31 March 2021. This article outlines suggested actions for end of year record keeping and accounting. We recommend you action this today! It will save you time, costs, and unnecessary complexities.The financial year is from 1 April 2020 to 31 March 2021. You may not have your financial statements prepared until [say] October 2021 and it could be difficult to remember what transactions, exchanges, or tokens you owned 6 – 18 months ago. Wallet and excha...

Claiming Cryptocurrency Tax Losses to 31 March 2022

The 2022 financial year has had wild price fluctuations. We all experienced record price highs before Christmas, and then a significant pullback in prices in early 2022.No doubt, some taxpayers have traded at the top of the market, triggering a significant profit, and then purchased (due to the trading nature) other cryptocurrency tokens. Those new tokens may be only a fraction of the value they were purchased for. This decrease in value may not be tax-deductible…This article’s purpose ...

Cryptocurrency Tax Webinars – March 2021

Purchase a copy of the foundation recording here (note: you will pay via PayPal and receive a copy of the recording – do not refresh your browser)...

Tax Overview: Contractor Getting Paid in Cryptocurrency

More contractors are being paid in cryptocurrency. This occurs when a contractor performs services and receives cryptocurrency as payment (instead of NZ dollars).The amount of remuneration (cryptocurrency received for services) will depend on the contracting agreement.It could be tied to an hourly rate, then adjusted based on the market value of that cryptocurrency. For example, 10 hours at $100 per hour is $1,000 total; the contractor could receive $1,000 worth of ABC token based on the market ...

Cryptocurrency Tax Basics

This article outlines what triggers a taxable event and how to calculate the profit on cryptocurrency transactions. An individual taxpayer includes their profit for the financial year (1 April to 31 March) in their income tax return. The profit is combined with their worldwide income and the taxpayer pays tax on the profit at their marginal tax rate. Examples below step through increasingly complex tax calculations of purchasing and selling Bitcoin with $NZD.This recent article explain...

How much tax do I pay on my cryptocurrency profits?

An individual combines their cryptocurrency profits for the financial year (1 April to 31 March) and reports a single profit/loss amount to Inland Revenue (IRD) in their income tax return. The crypto profit is combined with their worldwide income (employment income, business income, investment income etc) and an individual pays tax on their income at their marginal tax rate.This means, that as an individual’s income increases, they pay more tax on that increase of income.Without knowing an ind...

Planning for Tax – Decisions to Consider

Cryptocurrency prices have increased significantly in 2020 and many clients have made money from their investments. Tax liabilities for the financial year ending 31 March 2021 are likely to follow; prepare now.Some clients will keep their profits invested in cryptocurrency. There is risk that if prices fall, they will still have tax to pay but may not have enough cryptocurrency when it comes time to pay the tax.This article’s purpose is to prepare clients for upcoming tax payments, provide opt...

Safe Harbour Tax Overview

Cryptocurrency prices have recently increased significantly in value. This results in many clients currently having significant profits and subsequent tax liabilities.In some cases, IRD will charge interest at 7% pa on any underpaid tax. This article focuses on those situations when IRD will charge interest on shortfall of tax paid, and when they do not (also known as a ‘safe-harbour taxpayer’).  It also outlines recommendations and how you can prepare for any tax payments.Part 2 will o...

Inland Revenue Requests Information from New Zealand Cryptocurrency Companies

You have likely received an email in the past month informing you that IRD has requested client information from NZ cryptocurrency retailers. This includes your personal details and purchase/sale history. All businesses in NZ (regardless of industry) are legally required to give information to IRD when requested.This article outlines my thoughts about the situation including, historical thoughts, what will they do with your information, how IRD have easy access to cryptocurrency information, how...

39% Marginal Tax Rate?

The Labour Party has announced that if re-elected, they would introduce a new marginal tax rate of 39% for an individual’s income over $180,000. The 39% tax rate would only apply to income over $180,000 and the remainder of an individual’s income will be taxed at current marginal tax rates.Labour believes this change will only affect 2% of the population (who earn more than $180,000) and explain that it will help maintain balance as they continue to manage the impact of Covid-19.Significant ...