Australian Tax Office Sent Warnings To Australians Regarding Their Annual Returns From Cryptos
The Australian Tax Office (ATO) has warned Australians to declare their annual returns from virtual currencies. The main intention is to tighten regulations and improve the tax collection from virtual currency-related activities. This is something similar to what other regulatory agencies are doing around the world.
Australia considers Bitcoin and virtual currencies as property rather than currencies. It is important for taxpayers to pay for their capital gain tax after they sold virtual currencies in the market.
At the same time, taxpayers have to keep regular records of their transactions with the exact dates and amounts. Everything must be specified in Australian dollars, the purpose of the transaction and the parties involved in these transactions.
Digital Currency exchanges in the country must be registered with the local authorities, including the Australian Transaction Reports and Analysis Centre. Moreover, those transactions that surpass $10,000 must be informed by exchanges. Customers using these exchanges must provide their personal information for them to be able to trade and exchange virtual currencies.
An ATO spokesperson explained on the matter:
“While there is no specific label on the capital gains schedule or income tax return to identify how many people have invested in cryptocurrency we are still looking at lodgement activity this year to determine any significant impact of cryptocurrencies.”
Other countries such as France have also taken different decisions regarding cryptocurrency taxpayers. Recently, the National Assembly of France decided to reject some friendly tax amendments that aimed at lowering taxes for crypto traders.
In the United Kingdom, crypto holders can offset profits and reduce tax. The information was released by the tax agency of the UK in a detailed explanation on December 19. Individuals that hold cryptocurrencies as an investment will have to pay Capital Gains Tax when they sell their crypto assets.