Australia’s Tax Authority Goes On The Offense Towards Elusive Cryptocurrency Traders
Australia’s Tax Authority Goes Behind Cryptocurrency Traders
The Australian tax authority is trying to go behind users that deal with virtual currencies to be sure they pay their virtual currency taxes.
According to some reports, the country’s tax office is trying to collect records from crypto services providers to be able to understand whether users pay the correct amount of taxes.
Australia’s Tax Authority Wants To Control The Market
The Australian Tax Office (ATO) released a statement in which it says that between 500,000 and 1 million Australians invested in virtual currencies. Now, the ATO will be using data matching in order to control whether users are correctly disclosing their income details correctly.
Commissioner WIll Day commented about this:
“The ATO uses third-party data to improve the integrity of the tax system by identifying taxpayers who fail to disclose their income details correctly. We also use third-party data to assist taxpayers in meeting their tax obligations through pre-filling of tax returns.”
At the same time, the ATO is working side by side with the Australian Securities and Investment Commission (ASIC) and the Australian Transaction Reports and Analysis Centre (AUSTRAC). Moreover, the ATO is also working in an international effort as part of the Joint Chiefs of Global Tax Enforcement (J5). This is in order to investigate crypto-related tax evasion.
Australian authorities are trying to fight against tax evasion, something that other countries are also doing in the cryptocurrency market. Is getting very difficult for authorities to be able to control individuals that deal with virtual currencies. This is why crypto platforms are starting to implement different KYC and AML policies to control their users.
The cryptocurrency industry has been expanding all over the world but regulations were not able to address the current challenges of the industry.