Australian Tax Office To Crack Down On Bitcoin Tax Evaders
As indicated by the reports, the Australian Tax Office (ATO) will find the investors that are obligated to pay taxes on their bitcoin investments. Right now, the tax office considers the digital currency an asset rather than money. Besides, they will utilize the identification and data matching checks to seek after the digital currency investors.
The Australian Tax Office will additionally hire anti-money laundering (AML) measures alongside bilateral tax treaties to guarantee transparency inside the digital currency market.
According to the National Tax Liaison Group Member, Paul Drum, it was a defining moment for them. He additionally expressed that:
“The effectiveness of the anonymity of Bitcoin and other cryptocurrencies is starting to fade. These coming changes mean that people shouldn’t assume they can hide forever behind blockchain technology, nor should they assume there are no tax consequences.”
He likewise remarked on if bitcoin investments are absolved from the personal asset principles of capital increases:
“This is going to be a question asked time and again by cryptocurrency traders, and it will come down to the facts of each individual case.”
The AML measures that will be released one month from now and will provide the ATO with all the more probing powers. Moreover, these measures will give an oversight of crypto market while including 100 point identification checks that are necessary for crypto traders.
As indicated by deputy commissioner of ATO, Will Day, the tax office would center on increased transparency to handle the people who have cheated their digital currency taxes. This progression takes after the developing measures taken worldwide to put a stop to the bitcoin tax avoidance.
Aside from AML and KYC measures, exchanges will likewise need to uncover those exchanges that appear to be suspicious. It additionally incorporates any cash transaction that surpasses 10,000 Australian dollars. These new measures will give the Australian financial intelligence agency, AUSTRAC with expanded jurisdiction.
ATO additionally specified that specific criteria do offer exemption:
“Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less.”
