A new cryptocurrency data-matching program will be used by the ATO to scrutinise cryptocurrency transactions and account information from the main service providers in an attempt to identify the buyers and sellers of crypto-related assets.
The Tax Office is expecting records relating to in excess of 400,000 individuals to be obtained each year. The data will uncover individuals who have failed to report the disposal of cryptocurrency and the appropriate capital gain or loss in their income tax return.
It is expected that data collected under the program will be retained for a further seven years in an attempt to cross-reference taxpayer records.
Interest surrounding crypto-related investments has exploded in 2021, with popular currency Bitcoin reaching highs of over $80,000 AUD. Many other coins have followed suit, even Dogecoin, a cryptocurrency that started as an internet meme, saw its value spike by 12,000 percent in May.
We strongly advise speaking to a Tax Professional here at Crest Accounting to ensure you disclose all gains and losses appropriately and avoid any future penalties. Please don’t hesitate to give us a call and book an appointment on 02 4929 2552.