The Australian Taxation Office urges citizens to accurately report transactions such as Bitcoin (Bitcoin), it is expected that 600,000 Australian dollars will now be tax applications submitted by Australians who are considered to have invested in digital assets.
Tim Loh, Assistant Commissioner of ATO, tell News.com.au, people still make mistakes and see cryptocurrency as a currency rather than an asset. The ATO hopes to dispel the myth that cryptocurrency profits are tax-exempt, or that they only need to be declared when they are cashed in legal tender.
Loh said that thanks to the cooperation of exchanges and banking institutions, the tax bureau already knows who has invested in cryptocurrencies.
Lu said: “(We) trace the traces of money back to the taxpayer and operate it through the ATO. The ATO has a profile that matches the data of the cryptocurrency exchange. They provide us with the information, and we use that information to communicate with people. To cross-match your tax returns,”.
“There is no game of hide-and-seek. We already have this information, and what we ask people to do is follow the rules. We know that most Australians follow the rules.” He added.
Loh said he was shocked that some people were willing to ignore Tax obligations arising in the cryptocurrency world. The ATO will contact 400,000 Australian citizens in 2021, urging them to review previously filed tax returns and prompt them to report Capital gain or loss Conduct encrypted transactions.
As for the process of maintaining accurate tax records, Loh Loh said that the best practice is to record each transaction in Australian dollars and record the date, time and wallet address.
“The best secret to determining your cryptocurrency gains and losses is to keep accurate records, including the date of the transaction, the value of Australian dollars at the time of the transaction, the purpose of the transaction, and the identity of the counterparty, even if it is just their wallet address.