New Zealand Tax Agency Seeks Comments on Income Taxation of Decentralized Finance Transactions Involving Crypto-Assets

The New Zealand Inland Revenue Jan. 29 opened a consultation on a draft issue paper on the income taxation of common decentralized finance (DeFi) peer-to-peer transactions involving crypto-assets. Topics covered include: 1) the application of income tax rules for personal property to crypto-assets; 2) the likely taxability of crypto-asset disposals in DeFi transactions under Income Tax Act 2007 provisions on property acquired for disposal, or income from profit-making undertakings or regimes; 3) when, for tax purposes, a disposal isn’t considered made, like when crypto-assets are locked in a separate part a person’s wallet while being used in a DeFi transaction; ...