Private ruling: CGT - legal and beneficial ownership
Date of advice: 12 November 2021
Published: February 2022
Ruling period: Year ending 30 June 2021
Date scheme commenced: 1 July 2020

Ruling: Q1: Can the capital gain made on disposal of the cryptocurrency be split equally between the taxpayers? | A1: Yes. Although the account with the cryptocurrency exchange was held in the name of only one person, the evidence provided makes it clear that the cryptocurrency acquired was jointly owned for the purposes of the capital gains tax provisions.

Relevant facts and circumstances: Individual A and Individual B decided to purchase cryptocurrency together and they each contributed the same amount of money to enable this to happen. Any profit or loss would be split evenly. Individual A holds an account with a cryptocurrency exchange. Individual B transferred their share of the funds to Individual A to enable the purchases to be made. The cryptocurrency purchased was subsequently sold for a gain, and Individual A withdrew the proceeds from the account and transferred Individual B's share to their bank account. Individual A and Individual B made a capital gain which was to be split evenly between them. Account statements have been provided which list the relevant transactions.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10