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QB 21/06
Issued
18 Jun 2021

Income tax - tax treatment of cryptoassets received from an airdrop

The use of cryptoassets and distributed ledger technology (e.g. blockchain) is becoming increasingly common. As a result, Inland Revenue has been asked to clarify the tax treatment of various types of cryptoasset transactions and arrangements. This item addresses the income tax consequences of receiving cryptoassets from an airdrop.

See related QB 21/07: Income tax - tax treatment of cryptoassets received from a hard fork

Tax Information Bulletin Vol 33 No 7 – August 2021

Income Tax Act 2007 – ss CA 1(2), CB 1, CB 3, CB 4, DA 1, DB 23, EA 2

AA Finance Ltd v CIR (1994) 16 NZTC 11,383 (CA)
Case F41 74 ATC 227 (Board of Review)
Case S86 (1996) 17 NZTC 7,538 (TRA)
CIR v City Motor Service Ltd; CIR v Napier Motors Ltd [1969] NZLR 1,010 (CA)
CIR v Grover (1988) 10 NZTC 5,012 (CA)
CIR v National Distributors Ltd (1989) 11 NZTC 6,346 (CA)
Duff v CIR (1982) 5 NZTC 61,131 (CA)
FCT v Miranda 76 ATC 4180 (NSWSC)
Halliwell v CIR (1991) 13 NZTC 8,197
Investment & Merchant Finance v FCT (1970) CLR 177 (HCA)
Rangatira Ltd v CIR (1996) 17 NZTC 12,727
Reid v CIR (1985) 7 NZTC 5,176 (CA)
Ruscoe v Cryptopia Ltd (in liq) (2020) 5 NZTR 30-001 (HC)
Sharkey v Wernher [1956] AC 58 (HL)
Tasman Forestry Ltd v CIR (1999) 19 NZTC 15,147 (CA)
Tennant v Smith (1892) 3 TC 158 (HL)
Tikva Investments Pty Ltd v FCT 72 ATC 4,231 (HCA)
Vuleta v CIR [1962] NZLR 325 (SC)