Australia’s Tax Office Targets Bitcoin Investors

Australia’s Tax Office Targets Bitcoin Investors

The ATO (Australian Tax Office) is tightening up in attempts to close loopholes in investments in cryptocurrencies like bitcoin.

Cryptocurrency will be one area going under close attention, alongside work expenses and incorrect claims.

Mark Chapman, H&R Block’s director of tax communications told reporters that these were areas that had seen “systemic abuse”, costing the budget over $2.5b a year.

The authorities state that they will use 100-point identification checks to implement data-matching techniques in order to investigate cryptocurrency investors. The subject is a “murky area”, with many unaware of current regulations. Chapman said:

The ATO provided guidance regarding the issue earlier this year. The document outlines that whilst cryptocurrency (specifically Bitcoin) is not seen as money or foreign currency, it is viewed as an asset subject to capital gains tax.

There has been a range of cryptocurrency developments in Australia recently. Earlier this month the bank CBA was among those who banned the purchase of cryptocurrencies with credit cards. However, the news has not all been negative – in January Brisbane airport became the world’s first to accept cryptocurrencies for retail and services.

Australia might not be alone in moving to tighten control of cryptocurrency taxes. A recent report found that 0.04% of US cryptocurrency users are paying taxes. Of the 250,000 Americans studied over 57% admitted knowing taxes were applicable to their crypto transactions.

With statistics like these beginning to appear, we may see authorities around the world look to tighten tax control.

Featured image from Shutterstock.

05.03.2018 / 15:05 77
Russian Officials Propose Lighter ICO Regulations, Cryptocurrency Income Tax Breaks Russian Officials Propose Lighter ICO
Russian officials have recently suggested a number of modifications to the draft law “on digital financial assets,” including tax breaks and
Australian Tax Office To Crack Down On Crypto Tax Evaders Australian Tax Office To Crack Down On
The Australian Tax Office is going to take strong action this year to find those who evaded taxes on their cryptocurrency transactions. The
Russian Vice-Minister: Government Needs Blockchain Platform Focused On Stability Russian Vice-Minister: Government Needs
Vice-Minister of Russian communications ministry says government would require a separate, internally developed Blockchain platform. The
Cryptocurrencies to Overtake 25% of Fiat Money by 2030, Says Futurist Cryptocurrencies to Overtake 25% of
Futurist speaker Thomas Frey has a vision of a decentralized future. Frey, whose titles according to his Twitter profile include architect of the
Liberland to Issue Its Own Cryptocurrency, Accepts Bitcoin, Bitcoin Cash And Ethereum Liberland to Issue Its Own
Liberland, a self-proclaimed country between Serbia and Croatia that has been struggling for its independence for three years, plans to launch its
Louisiana Attorney General Probes Own IT Dept Over Bitcoin Mining Allegations Louisiana Attorney General Probes Own
The Louisiana Attorney General, Jeff Landry, has opened a criminal investigation into his own office’s information technology division, including its
Comments (0)
Add a comment
Comment on