Economy 07-05-2024 06:02 19 Views

Australia Tax Office Sets Sights On Crypto Exchanges’ Client Data, Bank Details

The Australian Tax Office is demanding annual transaction details from crypto exchanges in a move to tackle potential tax evasion. This crackdown aims to ensure investors correctly report their crypto gains and pay any capital gains taxes owed.

Announced in April, the data collection program requires designated exchanges to provide certain information. This includes client names, addresses, birthdays, and transaction details. It is aimed at promoting a fair and balanced tax system.

The office acknowledged the complexities of using crypto, which can cause confusion among users regarding their tax responsibilities.

“Also, the ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax obligations,” it added.

Aussie Crypto Boom Triggers Tax Scrutiny

Australia is a significant player in the crypto ecosystem and classifies crypto as taxable assets rather than foreign currency. This means crypto investors are liable for capital gains tax when they sell crypto for a profit or trade one digital asset for another. The country boasts a sizable crypto user base. An estimated 25% of Australians held cryptocurrencies as of 2022.

The office has collaborated with partners to gain a clear understanding of crypto’s tax implications. It has also worked to develop a suitable regulatory response. Its new crypto asset data-matching program directly tackles the issue of underreported or inaccurate capital gains tax, income tax, goods and services tax (GST), and fringe benefits tax (FBT) associated with cryptocurrency.

Bitcoin ETFs to Launch in Australia This Year

Australian investors are set to gain a new avenue for investing in Bitcoin. The country’s main market operator, ASX, is on track to approve the first-ever Spot Bitcoin exchange-traded funds (ETFs) by the end of 2024, potentially triggering a surge in Bitcoin investment options.

Separately, Australia and Indonesia signed an information-sharing agreement last month to strengthen tax enforcement on cryptocurrency,

The pact aims to improve both countries’ ability to identify crypto assets potentially subject to taxation.

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