Australian tax regulator will check 350,000 Bitcoin traders

by in Cryptocurrency News

Australia tax Bitcoin traders

Australia's tax regulator will remind crypto traders of tax liability. This will happen by sending emails or regular letters, reports

Related: New Zealand wants to exempt crypto from double taxation

Since cryptocurrencies are considered a form of ownership in the country, they fall under the law on capital gains tax. This means that all operations, including the sale, trade, exchange, conversion into Australian dollars or foreign currency, the use of cryptocurrencies to obtain goods or services, fall under the scrutiny of the regulator.

So, for example, in June 2019, due to the peculiarities of local taxation, the trader paid $100,000 in tax on coins worth only $20,000.

This time, the department will provide traders with a month for self-examination and the necessary actions to resolve issues before they arise.

The representative of the Australian Taxation Office recalled that in April last year they published a data comparison protocol for cryptocoins, in which exchanges transmit to the supervisory authority all the necessary data on taxpayers trading cryptocurrencies.

Over the next two months, the ATO expects to contact 350,000 people who have been trading crypto over the past few years.

Recall that a week ago a court in Australia called cryptocoins a “recognized form of investment”, and an account on the crypto exchange can be used to cover legal costs.