AUSTRALIA CASTS ITS NET! CRYPTO EXCHANGES UNDER SCRUTINY IN TAX HUNT

Australia's tax agency has requested personal data and transaction details for up to 1.2 million accounts from cryptocurrency exchanges in an effort to crack down on users who may be neglecting to pay their taxes in the midst of increased interest in digital currencies.

In a notice released last month, the Australian Taxation Office (ATO) stated that the data will assist in identifying traders who failed to declare the exchange of crypto assets or when they traded them for cash and used it to pay for goods or services, According to Reuters report.

The ATO stated that the complexity of the cryptocurrency market might result in a real lack of knowledge of tax requirements. "Also, the ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax obligations" , added the report.

Personal information such as the date of birth, phone numbers, social media profiles, and transaction details such as bank accounts, wallet addresses, and coin kind will be requested.

Australia taxed digital currencies as assets rather than foreign currency. This implies that investors will have to pay capital gains tax on profits made from selling crypto assets and trading digital assets, Reuters reported.

Crypto assets have grown in popularity in Australia. According to a government study issued in 2022, more than 800,000 Australian taxpayers traded in digital assets in the previous three years, with a 63% increase in 2021.

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2024-05-07T19:14:18Z dg43tfdfdgfd