ATO Crackdown on Cryptocurrency Transactions begins
Cryptocurrencies (not just Bitcoin) are to get a lot more attention this tax time after the ATO has expressed concern that Australian taxpayers may be under a misconception that cryptocurrency gains are tax free or only taxable when the holdings are cashed back into Australian dollars.
The Commonwealth Gazette has posted a notice that the ATO will acquire account identification and transaction data from cryptocurrency designated service providers for the 2021 financial year through to the 2023 income year inclusive.
The data will be acquired and matched to ATO systems to identify and treat taxpayers who failed to report the disposal of cryptocurrency in their income tax return. The matching process strengthens ATO’s ability to target people who may not be meeting their obligations. These obligations may include registration, lodgement, reporting and payment responsibilities.
The data items include client identification details (names, addresses, date of birth, phone numbers, social media account and email addresses) as well as transaction details (bank account details, wallet addresses, transaction dates, transaction time, transaction type, deposits, withdrawals, transaction quantities and coin type).
The data will be acquired and matched to ATO systems to identify and treat clients who failed to report the disposal of cryptocurrency in their income tax return.
ATO aims to obtain records relating to approximately 400,000 to 600,000 individuals each financial year. Cryptocurrency records relating to up to one million individuals have been received by the ATO, with taxpayers given 28 days to clarify their information before the compliance audit begins.
In letters seen by Accountants Daily, the ATO states: Information provided to us indicates you may have disposed of cryptocurrency in the [X] financial year.
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