Still trying to wrap my head around the legalities of declaring bitcoin income/profits under income tax/capital gains laws, but for now -

If you receive a payment in bitcoins/litecoins, for whatever business transaction, and did not convert it into $, but instead conducted all your business/purchases etc in bitcoin, what requirements are there likely to be for declaring for legal/tax purposes?

For example, if you had a business which exchanged goods for bitcoin, and somehow managed to fund all your expenses (ie supplies, postage etc) in bitcoin,  as well as receiving your income/profit in bitcoin, how would that be viewed?

Would it be viewed as a bartering exchange? If you never actually convert to $, does that rule out needing to declare profit/loss from value exhange?

As far as I gather, the ATO have a reputation for backdating things when they find tax hasn't been paid. Whats the likelihood they're going to hunt everyone down from undeclared bitcoin income when they do make their minds up as to how to classify it?