A framework for understanding the taxation of digital tokens
As a relatively new area, the taxation of digital tokens can give rise to several dangerous misconceptions. This article lays out five propositions to counter these misconceptions: 1) digital tokens are not a single monolithic asset class attracting uniform tax treatment; 2) the common trichotomous...
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2022
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sg-smu-ink.sol_research-58662022-04-18T01:33:57Z A framework for understanding the taxation of digital tokens OOI, Vincent As a relatively new area, the taxation of digital tokens can give rise to several dangerous misconceptions. This article lays out five propositions to counter these misconceptions: 1) digital tokens are not a single monolithic asset class attracting uniform tax treatment; 2) the common trichotomous division of digital tokens into payment, utility and security tokens is derived from securities regulation and should not be blindly adopted into tax law; 3) the three classes are not mutually exclusive and hybrid tokens may exist; 4) the fact that an asset is a digital token rarely changes its tax treatment by itself, which must be determined by the surrounding circumstances of the relevant taxable event; and 5) there are broad similarities in the way that digital tokens of the same class might generally be taxed across a variety of common taxable events, which might provide a useful broad overview of this field. 2022-04-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sol_research/3908 https://ink.library.smu.edu.sg/context/sol_research/article/5866/viewcontent/A_Framework_for_Understanding_the_Taxation_of_Digital_Tokens.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Yong Pung How School Of Law eng Institutional Knowledge at Singapore Management University Taxation Taxation Law Tax Law Cryptocurrencies Digital Tokens Science and Technology Law Taxation-State and Local |
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Taxation Taxation Law Tax Law Cryptocurrencies Digital Tokens Science and Technology Law Taxation-State and Local OOI, Vincent A framework for understanding the taxation of digital tokens |
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As a relatively new area, the taxation of digital tokens can give rise to several dangerous misconceptions. This article lays out five propositions to counter these misconceptions: 1) digital tokens are not a single monolithic asset class attracting uniform tax treatment; 2) the common trichotomous division of digital tokens into payment, utility and security tokens is derived from securities regulation and should not be blindly adopted into tax law; 3) the three classes are not mutually exclusive and hybrid tokens may exist; 4) the fact that an asset is a digital token rarely changes its tax treatment by itself, which must be determined by the surrounding circumstances of the relevant taxable event; and 5) there are broad similarities in the way that digital tokens of the same class might generally be taxed across a variety of common taxable events, which might provide a useful broad overview of this field. |
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text |
author |
OOI, Vincent |
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OOI, Vincent |
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OOI, Vincent |
title |
A framework for understanding the taxation of digital tokens |
title_short |
A framework for understanding the taxation of digital tokens |
title_full |
A framework for understanding the taxation of digital tokens |
title_fullStr |
A framework for understanding the taxation of digital tokens |
title_full_unstemmed |
A framework for understanding the taxation of digital tokens |
title_sort |
framework for understanding the taxation of digital tokens |
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Institutional Knowledge at Singapore Management University |
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2022 |
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https://ink.library.smu.edu.sg/sol_research/3908 https://ink.library.smu.edu.sg/context/sol_research/article/5866/viewcontent/A_Framework_for_Understanding_the_Taxation_of_Digital_Tokens.pdf |
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