Australia’s tax authorities are honing in on the details of up to 1.2 million cryptocurrency users, aiming to obtain their personal information and transaction histories from crypto exchanges. This move, revealed through a notice issued by the Australian Taxation Office in April, underscores efforts to combat potential tax evasion amidst a significant uptick in crypto activity.
The notice highlights concerns that the anonymity offered by crypto transactions could facilitate tax evasion, making them an attractive avenue for those seeking to evade their tax obligations. To address this, the tax office is seeking comprehensive information from exchanges, including personal details such as dates of birth, phone numbers, and social media profiles.
Moreover, transaction specifics, including bank account details, wallet addresses, and types of cryptocurrencies involved, are also subject to scrutiny. In Australia, cryptocurrencies are treated as assets rather than foreign currency, rendering investors liable to capital gains tax on profits generated from trading or selling these assets. Notably, profits from disposing of crypto assets held for over 12 months are eligible for a 50% discount on tax rates.
This initiative follows closely on the heels of a recent agreement between tax authorities in Indonesia and Australia to establish a framework for sharing information on cryptocurrencies. The goal is to enhance asset identification for taxation purposes in both countries. Additionally, Australia is collaborating with other nations to develop the Crypto-Asset Reporting Framework (CARF), aimed at facilitating automatic sharing of information on crypto transactions. Ultimately, such efforts strive to establish a standardized approach to taxing cryptocurrencies globally.
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