The Australian Tax Office has urged citizens to accurately report any gains made in the process of trading cryptocurrencies such as bitcoin.B T c), As it expects tax filings from a pool of 600,000 Australians who now believe it to invest in digital assets.
ATO Assistant Commissioner Tim Loh, Told news.com.au that people still made the mistake of treating crypto as a currency as opposed to an asset. The ATO wants to rid citizens of the myth that cryptocurrency benefits are tax-free, or that they only need to declare when they are redeemed back to fiat money.
Loh said the tax office already knew who had invested in cryptocurrency, thanks to the cooperation it received from exchanges and banking institutions.
Loh said, “(We) follow the money trail back to the taxpayer and we do this through the ATO which has data matching profiles with cryptocurrency exchanges and they provide that information to us and we Use the information to match people’s tax returns. ” .
“There is no hide and seek. We have received that information and we are asking people to follow only the rules. We know that most Australians follow the rules. “
Loh said he was concerned about the readiness to ignore some people Tax liability Done in the world of cryptocurrency. The ATO will contact 400,000 Australian citizens in 2021 and urge them to review their previously filed tax returns and prompt them to report. Capital gain or loss On crypto trades.
For the exact tax record keeping process, Loh said the best practice would be to record each transaction in the Australian dollar context taking into account the date, time and wallet address.
“The best tip for reducing your cryptocurrency profit and loss is to keep accurate records, including transaction dates, value in Australian dollars at the time of the transaction, what the transactions were, and who the other party was, even if it’s just their wallet address. , ”Said Loh.