Australia Enhances Crypto Data Tax Program for Effective Control and Crackdown on Tax Evaders

The Australian Taxation Office (ATO) is reshaping its cryptocurrency tax program to oversee crypto taxation and effectively catch defaulters. The agency has been collecting details of crypto transactions for the past decade, putting tax evaders who fail to file their tax information properly at risk of being caught.

The move underscores the increased tax scrutiny to come for cryptocurrency entrepreneurs and businesses in Australia.

Australian Taxation Office Updates Cryptocurrency Tax Matching Program

Adam Saville-Brown, managing director of cryptocurrency tax reporting platform Koinly, revealed this information in an exclusive correspondence with Cointelegraph. He revealed that the ATO is monitoring crypto gainers’ reports ahead of the end of the Australian financial year, scheduled for June 30.

Taxpayers, including cryptocurrency income earners, will begin filing tax returns by the end of June.

The ATO has updated its crypto data matching program with the aim of improving the collection of tax data on cryptocurrencies. The revamp will give the agency access to crypto transaction data from 2014 to 2026.

As part of its revamped program, the ATO has required Australian cryptocurrency exchanges to submit information on around 1.2 million cryptocurrency investors each year. These investors’ data includes names, dates of birth, emails, home addresses, phone numbers and social media accounts.

Other information includes IP addresses and crypto transaction details, such as the type of cryptocurrency transactions, wallet addresses, and banking details.

In particular, the ATO has been looking closely at crypto transaction data to ensure adequate tax details. All cryptocurrency exchanges operating legally in the country are expected to file tax returns on income from cryptocurrencies.

Michelle Legge shed more light on the ATO’s activities in crypto data collection. She said that the ATO always has access to crypto transaction data regardless of the crypto exchange platform, be it Coinbase, Binance, CoinSpot or others.

According to Saville-Brown, the ATO’s program is “likely to catch the few remaining investors who fail to comply” with tax reporting rules by surprise.

Additionally, the program does not exclude investors who have provided incorrect reports of their cryptocurrency earnings. At a minimum, the ATO will send them letters asking for accurate reporting of their crypto transactions.

Australia Adds Bitcoin ETFs to Tax Bill

Australian tax laws also apply to spot Bitcoin ETFs in the country. In particular, last June two spot ETFs on BTC emerged in Australia. VanEck ETF on Bitcoin launched on the Australian Securities Exchange on Thursday 20 June, with assets of approximately AU$990,000.

However, the other ETF, the Monochrome Bitcoin ETF (IBTC), holds Bitcoin Direct. IBTC began trading on Tuesday, June 4, on the Cboe Australia exchange.

According to the ATO, investors of any Spot Bitcoin ETF will pay capital gains taxes on the products.

Legge confirmed the extension of the tax matching program on ETFs. Although Legge described the introduction of spot BTC ETFs in Australia as good news, he noted that it would have a tax impact.

Meanwhile, the ATO’s revamped program aims to ensure transparency and fairness in the tax system. Furthermore, it serves as a wake-up call to any cryptocurrency investor in Australia who plays smart or evades tax returns entirely.

Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.

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