News that the Australian Taxation Office (ATO) will now have oversight over the digital currency held by Australians is a timely reminder for individuals to fully understand their tax obligations. The ATO estimates that between 500,000 and one million Australians have invested in crypto-assets.
"Cryptocurrency and blockchain technology is seen as an enabler of existing risks for the ATO," the ATO said in a statement. "Cryptocurrency has been used to move funds within the black economy, hide money offshore, and is sometimes linked to risks with unexplained wealth and undeclared taxable capital gains."
The move by the ATO is to ensure that individuals in possession of cryptocurrency are paying the right amount of tax, and will be collecting bulk records from Australian cryptocurrency designated service providers (DSPs) on cryptocurrency purchases and sales.
"The ATO uses third party data to improve the integrity of the tax system by identifying taxpayers who fail to disclose their income details correctly,” Deputy Commissioner Will Day said.
“We also use third-party data to assist taxpayers in meeting their tax obligations through pre-filing of tax returns. This data will be collected under notice from the DSPs on an ongoing basis."
Tax Debt Management is a specialist tax negotiation and settlement service that deals with over 100 tax cases every year, worth over $20 million dollars annually. The team at Tax Debt Management pride themselves on understanding the full scope of Australian tax obligations, and use this knowledge to advise Australians on a range of tax debt issues.
If you’re experiencing tax debt problems or need help with an overdue tax return, speak to an expert at Tax Debt Management about your situation and fully understand your tax obligations by calling 1800 829 277, or visiting www.taxdebtmanagement.com.au for more information.