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1 Does a CGT event under section 104-5 of the Income Tax Assessment Act 1997 (ITAA 1997) happen at the time the loan of the cryptocurrency is made?

1 Yes Question 2 Does a CGT event under section 104-5 of the ITAA 1997 happen at the time the cryptocurrency is repaid? Answer 2 Yes This ruling applies for the following periods : Income year ended 30 June 20XX Income year ended 30 June 20XX Income year ended 30 June 20XX Income year ended 30 June 20XX Income year ended 30 June 20XX Income year ended 30 June 20XX The scheme commences on: 1 July 20YY

The Lender proposes to lend 1 cryptocurrency to the Borrower. The Lender acquired the cryptocurrency as an investment. The Lender is in possession of the private key to the wallet which contains the cryptocurrency. The proposed loan will be made based on the terms within the Loan Agreement. Once the loan is made, the Borrower will take possession of the private key and transfer the cryptocurrency to an exchange. The Borrower will be able to deal with the cryptocurrency as it sees fit, the only requirement is that they repay the cryptocurrency in accordance with the Loan Agreement. The Borrower will dispose of the borrowed cryptocurrency, apply the proceeds to its working and trading capital, and ensure it repays the cryptocurrency in accordance with the Loan Agreement.

Income Tax Assessment Act 1997 section 104-5 Income Tax Assessment Act 1997 section 102-20 Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section 104-25 Income Tax Assessment Act 1997 section 108-5 Income Tax Assessment Act 1997 section 110-25 Income Tax Assessment Act 1997 section 116-20 Question 1 Summary A CGT event (CGT event A1) under section 104-5 will happen at the time the loan of the cryptocurrency is made, and The Lender will be liable for the capital gain or loss. Detailed reasoning Section 102-20 provides that you make a capital gain or capital loss at the time of the CGT event. Section 108-5 provides that a CGT asset is any kind of property, or a legal or equitable right that is not property. CGT assets include part of an interest in property or a