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Eversheds comment: HMRC should determine Bitcoin position quickly to avoid stifling development

  • United Kingdom

    20-01-2014

    Commenting on HMRC investigating the tax treatment of Bitcoins, Ben Jones, tax expert at global law firm Eversheds, says:

    “This is another example of the problems tax authorities around the world are having with applying existing rules to the digital economy. The pace of change in this area is a challenge and the global nature and flexibility of the digital economy will lead to disadvantages to the economies of those countries that are slow to react.

    "However, there are potentially significant benefits to countries that can adapt their tax and regulatory regimes to new developments such as Bitcoin in a manner that encourages such activities while imposing fair taxation and appropriate protections. To avoid stifling UK Bitcoin development at an early stage, HMRC will need to determine their position quickly and where possible, apply existing taxing rules to avoid the time consuming process of introducing new legislation.”

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