In a move to erase tax evasion from cryptocurrency traders, the Australian Taxation Office (ATO) has reissued Its warning to crypto traders so they declare their cryptocurrency trading profits when they annually report their revenues.
Several times in the past the regulatory body has issued these warnings to these crypto traders, but as of now, the tax watchdog is ready to enforce these warnings to improve their level of transparency.
Its the same story across Western nations as they tend to be quite laid back about cryptocurrency regulatory requirements but not the same for their Asian counterparts who are stiffer.
Australia, for now, seems to be towing the path of its stiff Asian counterparts regarding tax regulations.
Enforcing More Transparency
Australian Taxation office mandates crypto exchanges and crypto traders in the country to declare their profits as they are hell-bent on reducing tax evasion and all out for their cuts in these profits.
Now it is necessary to for crypto exchanges across Australia to verify the identity of their users and must report transactions that are over $10,000 that are deemed ‘Suspicious.’ Though the tax watchdog has stated that this move is linked to money laundering and anti-terrorism finance laws, still many crypto users view this differently.
A spokesperson for the regulatory body made a statement recently in the Australian Financial Review saying:
“While there is no specific label on the capital gains schedule or income tax return to identify how many people have invested in cryptocurrency we are still looking at lodgment activity this year to determine any significant impact of cryptocurrencies.”
Simply Reacting To Tax Queries
To most people not in the know about the watchdog’s motive, they believe the Australian Taxation office is only trying to enforce more transparency so they can get their taste of the action.
Though It’s not so, the tax watchdog is only reacting to an increased number of queries as regards to the tax obligations of those making cryptocurrency profits saying:
“We have observed through our ATO community channel and advice areas an increase in questions relating to tax obligations of cryptocurrency activity, which we see as a positive in people wanting to do the right thing in meeting their obligations.”
For the average Aussie crypto traders to meet up with these taxation laws, they must keep records and dates of their cryptocurrency transactions. Also, they must show the amount I Aussie dollars and name the purpose of their transactions and other parties involved in the trade.
Though many critics have dished out their complaints saying that such transparency is needed if cryptocurrency is to evolve, as most crypto support believe this goes against the whole concept of cryptocurrency.