Australia’s Taxation Office to Contact Cryptocurrency Traders on Tax Obligations
The Australian Taxation Office (ATO), the country’s revenue collection agency, is preparing to contact crypto traders on their tax obligations.
According to a report on Wednesday, an ATO spokesman stated that in the next two months, the agency will contact over 350,000 cryptocurrency traders over the last few years. In Australia, cryptocurrencies are regarded as property hence, they are subject to capital gains tax and must be reported to the ATO.
The spokesman also added that cryptocurrency traders should make sure they keep records of their transactions. These include date of transactions, value of transactions, purpose of transactions and the parties involved in the transactions.
He further mentioned that the agency might also contact taxpayers who traded in cryptocurrency during the 2017-2018 fiscal year. They will be required to review their return and report correct capital gains. However, those who refuse to comply to this directive could go be audited, according to the report.
Mark Chapman is the H&R Block’s director of tax communications. He stated that, if cryptocurrency traders fail to comply, they will have to pay the earlier tax with interest attached. The tax could become expensive so traders should consider the financial losses they could incur if they do this wrongly.
Featured image courtesy of Shutterstock. Source: Cryptopress.