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The Australian Taxation Office has urged citizens to accurately report any profits made in the process of trading Bitcoin and other cryptocurrencies (Bitcoin), because it is expected that 600,000 Australians will file tax returns, and they now believe that these people will invest in digital assets.
Tim Loh, Assistant Commissioner of ATO, tell news.com.au pointed out that people still mistakenly treat cryptocurrencies as currencies rather than assets. The ATO hopes to free citizens from the myth that cryptocurrency profits are tax-free or only required to declare when cashing in fiat currency.
Loh said that thanks to the cooperation of exchanges and banking institutions, the tax bureau already knows who invested in cryptocurrencies.
“(We) track the trajectory of taxpayers’ funds. We do this through the ATO. The ATO has data matching profiles with cryptocurrency exchanges. They provide us with this information. We use that information to communicate with people’s tax returns. Cross match,” Loh said. .
“There is no hide-and-seek game. We have obtained this information and all we ask people to do is follow the rules. We know that most Australians follow the rules,” he added.
Loh said he was shocked by the attitude that some people were prepared to ignore Tax liability Happened in the world of cryptocurrency. The ATO will contact 400,000 Australian citizens in 2021, urge them to review previously filed tax returns and prompt them to report Capital gain or loss Regarding crypto transactions.
As for the process of maintaining accurate tax records, Loh said that the best practice is to record each transaction in Australian dollars, recording the date, time and wallet address.
“The best technique for determining your cryptocurrency gains and losses is to keep accurate records, including the date of the transaction, the value of the Australian dollar at the time of the transaction, the purpose of the transaction and who the counterparty is, even if it is just their wallet address,” Luo said.
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