Cryptocurrency emerged from blockchain technology is the latest buzz in the technology and investment markets. While many people have started investing or trading through this currency, several businesses have also started accepting it as a currency. This brings the cryptocurrency under the same taxation scanner as the dollars. So, if you too are dealing with it, you should follow this guide to stay tax compliant and avoid penalties.
What Crypto Records ATO Considers?
If you are using technology for a better life, ATO is also using it to keep track of transactions. And for those using cryptocurrency, don’t miss to declare your gains and spending. ATO collects data about different cryptos, when you acquired them, value at the time of acquisition, and when & where you used them.
Wallet Addresses replace bank numbers in the crypto world. So, whenever someone transfers the digital currency from one wallet to another, their details along with the times and dates of the transaction are recorded
When you submit details of your crypto holdings, gains, and transactions, those are verified through advanced data matching. This is done to ensure accurate reporting and collection of taxes. So, you can avoid problems by providing exact details of all your dealings in the crypto world.
What Happens in the Case of Anomalies in Tax Returns?
Hiding or misrepresenting details of your income and transactions through cryptos is treated as a regular case of tax avoidance. Thus, you may face a penalty from the ATO depending on the negligence.
Understanding how to measure and declare crypto transactions can be difficult. You can hire a professional tax accountant from Toongabbie to rest assured that there’s no miss or negligence in your tax return.