Australian Tax Office says we can’t rely on crypto taxpayers own data

Tax authorities of Australia are now ready to take another move to perfectly implement the crypto-based tax rules to force all the crypto users to pay their taxes perfectly.

Australia is the most popular Known crypto hub and also the government of Australia is fully dedicated to the crypto industry in terms of bringing better rules and laws over the crypto industry to ensure the protection of the investors. In all these, crypto-related tax returns are a big concern in every country. Many crypto traders are trying their best to hide their crypto income with the use of a third-party crypto wallet. These types of things are creating huge doubt in the mind of the tax authorities of Australia. 

On 23rd November of the 14th International ATAX Conference on Tax Administration conference,  Chris Jordan- The Australian Tax Office (ATO) commissioner, said that tax authority will not rely on the records and data provided by the crypto users because there are many crypto users, which are not aware of the crypto tax guidelines.

“In a sector that is growing rapidly with new investors, we can’t rely on taxpayers knowing they need to keep records of their investment income and capital gains and disclose it on their tax returns.”

Commissioner further added that the main aim of the ATO is to push knowledge and information regarding the crypto-related tax system on the Aussie crypto traders that crypto gain is free of tax but when a crypto user will convert his funds into Australian dollars then he will be subjected to tax. 

Jordan also said that they want to force all crypto traders to report perfectly about their investments in crypto and pre-filling data on tax returns. 

The ATO commissioner said that they tried to match the data records of the crypto traders with the third party crypto services to ensure the tax reporting guidelines are perfectly followed for the crypto users or not. 

“We’ve expanded our data matching protocols to get more data from third parties to assist with emerging investments like cryptocurrency.”

Further said that ATO is working hard to get exact data of the crypto trading activities. 

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