The ATO To Pursue Crypto Traders Over Tax Dues
Reports emerging from Australia indicate that the Country’s tax administrator, The Australian Tax Office (ATO) is preparing to seek out crypto traders concerning their tax obligations.
Tax Claim Goes Back Several Years
A media report on Wednesday cites an ATO spokesman confirming that the agency will contact over 35,000 traders regarding their tax compliance spanning a few last years. The Australian law regards cryptos as property subjecting them to capital gains tax. Thus trades are mandated to report all proceeds from cryptocurrency transactions.
The spokesman reiterated that the also cryptocurrency traders should ensure that they kept records of their transactions. The details were to include the date of transactions, value moved, the purpose of transactions and the transacting parties.
He maintained that the agency could pursue taxpayers who traded in cryptos in the 2017-2018 fiscal year. TAO would require them to review their returns, thus report their correct capital gains. The report went on to state that those who didn’t comply with the directive risked auditing.
According to Mark Chapman, the H&R Block’s director of tax communications, any cryptocurrency trader who fails to comply with the directive risks paying the earlier tax and interest accrued. The punitive measure is a deterrent against erroneous filing.