SYDNEY, May 7 – The Australian Taxation Office (ATO) is intensifying efforts to ensure tax compliance in the cryptocurrency market. Exchanges are asked for personal data and transaction details from up to 1.2 million accounts.
The ATO aims to identify traders who may have neglected to report crypto transactions or pay taxes on their profits. The complexity of the crypto industry has led to a lack of awareness about tax obligations, according to the ATO.
The allure of using false information to purchase crypto assets makes them attractive to tax evaders, warned the ATO. Personal data like date of birth, phone numbers, and social media accounts, along with transaction details, will be requested.
Australia sees digital currencies as assets, not foreign currency, subjecting investors to capital gains tax when they sell or trade crypto assets. The popularity of crypto assets in Australia surged, with a 63% increase in transactions reported in 2021, according to a treasury report from 2022.
