ATO to Target Crypto Traders Using International Data Agreements
Australia’s financial press is expecting that the Australian Taxation Office (ATO) will take a hard stance on cryptocurrency investors this tax season, with the ATO recently vowing to leverage international data-matching agreements in order to track the taxation obligations of Australian cryptocurrency traders.
The Australian Tax Office has announced that it will leverage data sharing agreements made between Australia and other nations to determine the tax obligations of Australian cryptocurrency investors.
“We’re alert to the potential compliance risks that arise from cryptocurrencies but we’re not really alarmed about them,” ATO acting deputy commissioner Martin Jacobs told Australian Financial Review.
“Where people attempt to deliberately avoid these obligations we will attempt to take action. We have a range of existing powers that are designed to address unexplained wealth and conspicuous consumption that may arise through profits derived through cryptocurrency investment,” Mr. Jacobs added.
Mr. Jacobs also emphasized that changes to anti-money laundering rules mandating that Australian crypto exchanges identify wallet holders “will enable data exchanges to collect cryptocurrency trading information, which we’ll be able to access and use in our engagement activities.”