Australian Taxation Office cracking down on cryptocurrency investors

16 Jun, 2018
by Matthew Kim
News
Australian Taxation Office cracking down on cryptocurrency investors

The New Daily reports that tax experts with inside knowledge related to the Australian Taxation Office (AXO) confirmed that the government will start cracking down on the cryptocurrency investors this year.

Back in March, the ATO stated that they would use a “100-point identification checks to find cryptocurrency investors along with bilateral tax treaties and AML agreements. Liz Russell, a senior tax agent at Etax.com.eu, stated that the ATO is on a “warpath” to ensure the correct tax payments for cryptocurrency.

The ATO website states that all the tax returns in Australia cover financial year from July 1st to June 30th and are due on October 31st.

As Bitcoin rocketed past $20,000 last year before dropping back down to its current value of $6,500, there are many investors on both sides of huge gains or giant losses. Thankfully, losses from cryptocurrency can be deduced for the gains. The only exception from the taxes will be the use of cryptocurrency through the use of personal use.

Mark Chapman, the director of tax communications H&R Block Australia, confirmed the crackdown, stating that the “the ATO is really looking at that [cryptocurrencies] as a big risk area, because it’s new and people don’t understand the tax implications”.

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