It will now be harder for Australians to under-declare or over-declare the taxes they owe on their crypto holdings or transactions.
This follows an announcement by the Australian Taxation Office (ATO) that it will collect bulk records from cryptocurrency businesses in the country. In a statement, the tax collection agency indicated that this will be done to enhance accuracy in tax compliance:
The Australian Taxation Office (ATO) is collecting bulk records from Australian cryptocurrency designated service providers (DSPs) as part of a data matching program to ensure people trading in cryptocurrency are paying the right amount of tax.
Some of the information that the ATO will obtain from Australia’s crypto-related businesses will include purchase and sale records.
By law, cryptocurrency businesses in Australia are required to keep certain critical records. These include digital wallet records and keys, exchange records, and receipts of transfer or purchase of crypto assets.
Prior to any compliance action being taken, the relevant tax payers will be contacted by the tax collection agency after the data matching exercise to verify the information obtained.