Showing posts with label services. Show all posts
Showing posts with label services. Show all posts

Bitcoin is an Asset According to the Australian Tax Office

Everyone thought that bitcoins would remain untraceable and out of the reach of national revenue collections. This belief has proved to be fairyland. The Australian Tax Office now values bitcoins as assets to be included on your yearly income tax form.

If you have millions of these things when there value increases you will have to give part of it to the Australian Tax Office (ATO) if you reside in Australia. Don't think that this is the end - it is just the beginning. Other countries are looking at making bitcoins taxable income.

BitPos an Australian company which arranges an exchange and purchasing service for people dealing in bitcoins say owners have to pay the Goods and Service Tax (GST) on the full value of coins not just on the fee. This is when buying the actual "currency" itself.

Because dealers say bitcoin it is not a currency it opens the door for countries to interpret it as they like. It is possible some jurisdictions will class it as currency and capital investment. Indeed, some countries could make bitcoins illegal. This would throw a spanner in the works.

The ATO has issued a warning to businesses that purchases of goods and services with bitcoins must be recorded in the books and the government is planning to collect GST on it. Essentially, the currency is going to be taxed twice. Banks praise this because bitcoin is a treat to them.

Businesses do not know whether it is legal to charge the GST at the moment.  It could be levied on them when they have not collected it from customers.  This is a gray legal area at present.  Charging for GST when it not yet payable could be classed as price gouging, a trick to charge more.
Economics by Ty Buchanan
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Marketing Must Be Internet Based

The marketing game has changed. Long gone are the days when ad program were created for free-to-air TV advertisers. People spend most of their day on the phone, so advertising must be online.

Not only that, but the "early bird gets the worm". If you have a new marketing idea and put it on the Internet first then you win with rising sales. The new marketing concept that leads to sales is spread quickly through social media.

Marketers must not only be in the game: they need to be ahead of the game. New ideas win out. Replicating the old ways of doing things no longer works. Any perceived barriers are avoided by buyers and you lose out on sales.

Economics used to presume that consumers were all knowing about prices. Today, they really do know the price of things. They may look in the big stores. However, they usually buy online.

Buyers really analyze the advertisers message now. They look for "catches" in ads and ignore them moving on to buy elsewhere. Purchasing is so easy that buyers are becoming more patient, fully analyzing what they want and prices before opening their wallets - sorry bankcards.
Marketing by Ty Buchanan
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