- Australian Taxation Office (ATO) is targeting all of the crypto investors and traders in Australia.
- Cryptocurrency, according to the Australian Government and the ATO, is considered a type of property and hence an asset for capital gains tax purposes.
- The ATO spokesperson has asked all the crypto traders and investors to maintain good and understandable track records.
Australian Taxation Office (ATO) is targeting all of the crypto investors and traders in Australia by starting to give them stern notices in the coming weeks. The ATO has more than 350,000 individuals under its scanner to process them under notice through a phone call or emails to remind them or notify them of the application of taxation on the trading of cryptocurrency.
Cryptocurrency, according to the Australian Government and the ATO, is considered a type of property and hence an asset for capital gains tax purposes. This means any gains made by trading or investing in the crypto assets will lead under the category of capital tax gains and which should be brought under the notice of ATO (Australian Taxation Office).
The ATO spokesperson has asked all the crypto traders and investors to maintain a good and understandable track record of purchases and other transactions surrounding the Crypto for taxation.
The record must include receipts of purchase or transfer of cryptocurrency, exchange records, records of agent, accountant, and legal costs, digital wallet records and keys, the date of the transactions.
The value of the cryptocurrency in Australian dollars all recorded with their respective time of the transaction, including both the sender and receiver. Failing to do any of the above related to the taxation of the cryptocurrencies transaction will yield to auditing and incur large penalties, said the spokesperson.
The taxation office saw previous records of cryptocurrency transactions, including buying, selling, hodling, and saw a discrepancy in the taxes submitted by the individuals.
Hence, the ATO has taken this measure to ensure proper taxation and flow. Emails regarding this are already being sent to give an opportunity so that the individuals can self-correct.
Cryptocurrency transaction and related services fall under the same that of gaining passive income when selling a share or real estate and hence should be considered the same and taxed accordingly as capital gains tax said the ATO.