QB 21/07
Issued
18 Jun 2021

Income tax - tax treatment of cryptoassets received from a hard fork

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 a hard fork.

See related QB 21/06: Income tax - tax treatment of cryptoassets received from an airdrop

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 (HC)
Investment & Merchant Finance v FCT (1970) CLR 177 (HCA)
Rangatira Ltd v CIR (1996) 17 NZTC 12,727 (PC)
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 4231 (HCA)
Vuleta v CIR [1962] NZLR 325 (SC)