If you happen to be a crypto trader or holder based in Australia, this piece is of significant importance to you. The Australian Taxation Office (ATO) has decided to tighten its hold on crypto, by bringing in some new regulations. The national tax agency is undertaking various efforts to encourage better crypto taxation policies in the country.
ATO has announced that they have already started accumulating data from various exchanges and business firms dealing with crypto. The agency is collecting and storing bulk records, as an effort to better regulate the trade.
The office plans to run a data matching program, in order to verify the authenticity of the declarations, made by the taxpayers. This way, the tax collector can identify those neglecting or manipulating their fiscal responsibilities, more conveniently. It’s essentially an effort to clamp down on those reporting incorrect figures.
This move is expected to affect anywhere between 500,000 to one million Australians, since that is the approximate range of the population that ATO works with. Will Day, deputy commissioner of the ATO, said the following:
“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. We also use third-party data to assist taxpayers in meeting their tax obligations through pre-filling of tax returns. This data will be collected under notice from the DSPs on an ongoing basis,”
ATO will not be solely responsible for carrying out these tasks. It shall also receive support from other regulators, namely the Australian Transaction Records and Analysis Centre, and the Australian Securities and Investment Commission. This move is a big development for the country’s crypto industry, one that will understandably make some people sit up and take notice.
Read More: Is Cryptocurrency Taxed In Australia?