The Australian Tax Office (ATO) has enhanced its crypto data-matching program to better identify and prosecute tax evasion among cryptocurrency users. The program will gather extensive transaction data from 2014 to 2026 from all legally operating crypto exchanges in Australia, such as Binance, Coinbase, and CoinSpot.
This initiative aims to collect information, including names, addresses, emails, social media accounts, and IP addresses of approximately 1.2 million crypto investors annually. According to Adam Saville-Brown, general manager of Koinly, the ATO has been closely monitoring crypto activities and is likely to identify non-compliant investors who fail to report their transactions accurately.
Michelle Legge, head of tax education at Koinly, mentioned that the program's goal is to catch those who fail to comply with their tax obligations. Non-compliant taxpayers could receive reminders or more severe penalties from the ATO.
The ATO's guidance on handling repayments from bankrupt crypto lender Celsius remains unclear, causing potential confusion among users. The complexity of calculating taxable events, gains, or losses further complicates the situation. Investors are advised to consult experienced accountants to determine their tax liabilities.
Furthermore, Australia's introduction of two spot Bitcoin exchange-traded funds (ETFs) means that investors will still face capital gains tax when selling their ETF holdings.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
