Australia targets crypto tax evaders in exchanges

The country’s tax office is doubling down its efforts to bring crypto exchanges into its regulatory framework as authorities go after tax evaders

Australia’s tax office is now looking from crypto exchanges the personal data and transactional details of more than 1.2 million accounts as the country hopes to catch up to people who may have been avoiding paying tax, hoping that the government would not bother with individual exchanges.

However, the Australian Taxation Office (ATO) has said that it will indeed be going after traders who may have not been disclosing their information to the tax authorities. Crypto assets are indeed taxable under Australian law, which is clear to taxpayers already.

However, ATO also acknowledged that because of the complexity of the industry, some consumers may have been genuinely unaware of their obligations. ATO will now seek to identify instances where tax has not been paid and notify concerned parties.

In terms of the tax status of crypto, digital currencies are assets not foreign currency. This means that anyone who holds them would have to pay capital gains tax on profit from selling crypto assets or when they trade these digital assets. This measure comes at a time when interest in crypto assets in Australia has been steadily climbing up with at least 800,000 Australian taxpayers said to own digital currencies based on official data.

This has necessitated a closer look by the country’s tax office which is keen to ensure that crypto owners are compliant with the country’s tax law.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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