\u201cIn a sector that is growing rapidly with new investors, we can\u2019t rely on taxpayers knowing they need to keep records of their investment income and capital gains and disclose it on their tax returns.\u201d<\/p><\/blockquote>\n
\u201cOur main concern is that many taxpayers believe their cryptocurrency gains are tax-free or only taxable when the holdings are cashed back into Australian dollars,\u201d he added. <\/p>\n
Jordan explained that the ATO has been working on ways to \u201cnudge\u201d people in the right direction such as pre-filling data on tax returns to prompt crypto users to report their investments.<\/p>\n
The commissioner also said the ATO has ramped up its trading data matching capabilities in 2021 by sourcing information from cryptocurrency demand-side platforms (DSPs), share registries and brokers. <\/p>\n
\u201cWe\u2019ve expanded our data matching protocols to get more data from third parties to assist with emerging investments like cryptocurrency.\u201d<\/p><\/blockquote>\n
He added that, \u201cWe are working hard to improve the way we collect, manage, share, and use data, but we are just scratching the surface.\u201d <\/p>\n
Related: <\/em><\/strong>Reserve Bank warns Aussies over punting on \u2018fad driven\u2019 cryptocurrencies<\/em><\/strong><\/p>\nJordan did note however that \u201cmost people do the right thing\u201d as tax reporting compliance, or the \u201ctax performance\u201d of individuals and small businesses in Australia is high with \u201clittle or no intervention\u201d from the ATO at 94% and 87% respectively. <\/p>\n
Chainalysis down under<\/h3>\n
A firm that the ATO may call on in future is the Commonwealth Bank of Australia\u2019s partner Chainalysis. <\/p>\n
On Nov. 24, Chainalysis\u2019 country manager in Australia and New Zealand Todd Lenfield told the Australian Financial Review that his firm is hoping to provide key expertise to AUSTRAC and the ATO. <\/p>\n
\u201cWe want to have conversations with AUSTRAC about what they are looking to regulate and explain to the tax office the lessons that can be learned from what the IRS is doing. We can take experience we have got in the space, and provide a local flavor,\u201d he said. <\/p>\n
The firm currently provides blockchain analysis services for the U.S. Federal Bureau of Investigation and Internal Revenue Service, it also investigated Russia-based crypto business Suex OTC which was targeted by the U.S. Treasury Department in September over facilitating transactions for ransomware payments.<\/p>\n
Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The Australian Tax Office (ATO) says it<\/p>\n","protected":false},"author":3,"featured_media":145855,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n
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