Fun

Australia’s revamped data program to ‘catch out’ crypto tax cheats

News Feed - 2024-06-28 03:06:25

Jesse Coghlan2 hours agoAustralia’s revamped data program to ‘catch out’ crypto tax cheatsThe Australian Tax Office is collecting over a decade of crypto transaction data, and tax dodgers could be busted if they don’t properly file this tax season.666 Total views22 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe Australian Tax Office (ATO) will be closely watching those who cashed in their crypto gains ahead of the country’s financial year ending on June 30, as taxpayers begin lodging their tax returns before the end of the month.


“The ATO has kept a keen eye on crypto in recent years — and this year is no exception,” Adam Saville-Brown, the general manager of crypto tax reporting software Koinly told Cointelegraph.


The ATO has revamped its crypto data matching program to collect data from 2014 to 2026 from “any crypto exchange legally operating in Australia,” Koinly’s tax education head Michelle Legge explained.


“Whether you’re using Binance, Coinbase, CoinSpot, or another, the ATO will be able to collect your data,” she added.


The ATO expects the program to gather information, including names, addresses, emails and even social media accounts and IP addresses of 1.2 million crypto investors each year.


Saville-Brown said most crypto punters in Australiaknow their tax reporting duties, but the program “will likely catch out the few remaining investors that fail to comply.”


Those who don’t correctly file could receive a letter from the ATO with a reminder to report their crypto transactions properly, at the very least.Celsius refunds could spark confusion


The ATO’s guidance isn’t clear on how to handle the Bitcoin (BTC) and Ether (ETH) repayments from bankrupt American crypto lender Celsius, and its users “will be left confused by the potential tax implications as a result of their refunds,” Saville-Brown said.


Crypto deposits create a taxable event — which could be a gain for some, depending on how much they purchased it for.


“What remains unclear to investors is how to calculate their gain or loss, and more specifically, what figure to use as their cost basis,” Legge said.


She added the ATO hasn’t issued guidance on whether investors should use normal accounting methods or alternatives, “such as the original cost basis purchase for those specific assets, or whether they should use the value of the assets at a specific point in time — like the day withdrawals were limited or the bankruptcy filing date.”


Related:Australian MP says the country needs blockchain ‘more than ever’


Saville-Brown said it’s advisable to speak to an experienced accountant to work out the tax liability, as the refunds could be either taxable gains or losses.Bitcoin ETFs still go on the tax bill


Australia got two spot Bitcoin exchange-traded funds (ETFs) this month, with one that holds Bitcoin directly for the first time — the other launched on the country’s biggest stock exchange, another first.


But old laws still apply to the new products and investors “will pay Capital Gains Tax whenever they sell holdings from a Bitcoin ETF and make a gain,” said Legge.


She added, “while the introduction of Bitcoin ETFs to the Australian stock market is great news for the wider adoption of cryptocurrency, it’ll still result in a tax bill.”


Magazine:Best and worst countries for crypto taxes — Plus crypto tax tips# Taxes# Australia# RegulationAdd reaction

News Feed

Ana Paula Pereira8 hours ago‘That’s fraud,’ prosecutors say in closing arguments at Sam Bankman-Fried trialThe U.S. government delivered its closing arguments in New York in an effort to convince the jury that SBF
Canadian Firm 3iQ’s Bitcoin Fund Listed on Gibraltar Stock Exchange
Canadian Firm 3iQ"s Bitcoin Fund Listed on Gibraltar Stock ExchangeThe Gibraltar Stock Exchange said Tuesday that it listed a new bitcoin fund belonging to 3iQ Corp, a Canadian inve
Study Finds Most Popular Cryptocurrencies With Russian Social Media Users
Study Finds Most Popular Cryptocurrencies With Russian Social Media Users In a year with rising crypto prices, online chatter devoted to cryptocurrencies has increased significantl
Bitcoin price gets 'interesting' as triple candle close sees $61.5K return
William Suberg13 hours agoBitcoin price gets "interesting" as triple candle close sees $61.5K returnBTC price action sees uncommon moves for a weekend ahead of Bitcoin"s weekly, monthly and quarterly close.16117 Total vi
XSwap Started Yield Farming, The Highest APY Reaches 70,000%
XSwap Started Yield Farming, The Highest APY Reaches 70,000%XSwap, a main products of Xfinance ecosystem, has launched Uniswap LP token liquidity mining. This is a fair version, 100
Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since ‘Black Thursday’
Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since "Black Thursday" The cryptocurrency economy has been slowly rising toward a $200 billion market capitalizat
Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians
Custodial Lightning Network Service Attack Discovered by LN "Newbie" — Hacker Strikes 6 LN Custodians On September 18, a Redditor posted to the r/bitcoin forum and explained how
SEC issues Wells notice to DeFi protocol Uniswap
Ana Paula Pereira4 hours agoSEC issues Wells notice to DeFi protocol UniswapThe U.S. SEC issued a Wells notice to the decentralized exchange Uniswap on April 10, the team confirmed on social media.3467 Total views6 Total
Ezra Reguerra11 hours agoPoloniex exchange suffers $100M exploit, offers 5% bountyOver $100 million in digital assets were transferred from a wallet belonging to crypto exchange Poloniex in what security firms believe to
Tristan Greene4 hours agoSEC passes new ‘conflict of interest’ rules governing how brokers can use AIThe new rules will govern how brokers use artificial intelligence to entice investors and how they use “optimizat
Libertarian VP nominee: No new regulatory structure needed for crypto
Turner Wright5 hours agoLibertarian VP nominee: No new regulatory structure needed for cryptoMike ter Maat spoke with Cointelegraph on the role digital assets might play in the 2024 U.S. presidential elections, the Fed l
Investcorp announces real-world asset tokenization fund
Vince Quill6 hours agoInvestcorp announces real-world asset tokenization fundInvestcorp’s Strategic Capital Group currently has $1.5 billion in assets under management and will handle the collaborative deals.555 Total