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The Australian Taxation Office (ATO) has stated that cryptocurrency investors cannot be depended upon to track their investment profits and tax liabilities. As more new investors enter the market, ATO commissioner Chris Jordan says the agency relies increasingly on data from exchanges and brokers.
Australian Taxation Office No Longer Trusts Cryptocurrency Investors
The Australian Taxation Office (ATO) says it can no longer rely on taxpayers to manage the complex world of income tax, capital gains, and blockchain record-keeping on its own as first-time investors continue to flock to cryptocurrencies.
According to Finder data, roughly 18 percent of the population in Australia possessed a stake in cryptocurrencies like Bitcoin, Ethereum, or Cardano in October, up from 13 percent in March. However, the ATO warns that broad use comes with unique tax implications, as profits from cryptocurrency investments are subject to capital gains tax (CGT) under Australian law.
ATO commissioner Chris Jordan said many novices could not resolve these requirements independently, speaking at the International Conference on Tax Administration in Sydney on Tuesday.
Instead, the ATO, according to Jordan, has resorted to exchanges and brokers for such data, allowing the government body to pre-fill 89.5 million pieces of data throughout the 2020-2021 fiscal year.