Jai Sahu
The Australian Tax Office (ATO) has reportedly requested cryptocurrency exchanges to provide personal and transactional details for around 1.2 million cryptocurrency users. While acknowledging that some users might not be aware of their tax responsibilities, the ATO emphasized that others might be deliberately avoiding their tax duties.
ATO Focuses on Compliance from 1.2 Million Crypto Traders
In its efforts to address tax evasion, the Australian revenue authority has reportedly demanded that crypto exchanges submit both personal and transactional information of approximately 1.2 million users. This initiative aims to identify those who have not reported their earnings from crypto trading or from converting cryptocurrencies to fiat currency.
Recent reports suggest that the ATO is intensifying its efforts to clamp down on tax evasion within the crypto community, particularly at a time when the popularity of cryptocurrencies is on the rise in Australia. Furthermore, the ATO is working together with international tax authorities, including those in Indonesia, to enhance data sharing and knowledge exchange regarding cryptocurrency assets, as per Bitcoin.com News.
However, the ATO has recognized in a recent notice that the “complex nature” of the crypto industry might lead to unintentional non-compliance with tax obligations by some users. Nevertheless, the ATO has pointed out that the potential to use false information for purchasing crypto assets could make them appealing for tax evasion purposes.
“Also, the ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax obligations,” the ATO remarked.
The agency is looking to gather crucial personal data such as users’ birth dates, phone numbers, and social media profiles. Additionally, the ATO is requesting that exchanges provide detailed transactional data, including wallet addresses and the types of cryptocurrencies involved, according to the report.
As per Australian tax laws, cryptocurrencies are considered assets, and hence, any profits derived from crypto transactions are subject to capital gains tax.