Thus far, Australian cryptocurrency traders have been able to avoid the gaze of the tax man without too much effort. But this week, the Australian Taxation Office (ATO) launched a data-matching program, in an attempt to hunt down evaders.
Up To 1 Million Australians Hold Crypto Assets
According to ATO estimates, between 500,000 and one million Australians have holdings in some form of crypto asset. Of particular concern is the use of cryptocurrency to move and hide funds within the black economy, or links to unexplained wealth and undeclared taxable capital gains.
However, with the help of other regulators and international agencies, it also hopes to identify those who are unintentionally paying the wrong amount of tax. Deputy Commissioner, Will Day, explained:
We want to help taxpayers to get it right and ensure they are paying the correct amount of tax.
Could Limited Data And Obligation Spell Limited Success?
The ATO accepts that it has “limited data” on the levels of cryptocurrency investment and gains made by…