Tech
Australia seeks customer data from cryptocurrency exchanges as part of tax crackdown
(c) Copyright Thomson Reuters 2024
SYDNEY (Reuters) – The Australian Tax Office has searched cryptocurrency exchanges for personal data and transaction details of up to 1.2 million accounts in a bid to crack down on users who may fail to pay taxes in a context of growing interest in digital tokens.
In an alert issued last month, the Australian Tax Office (ATO) said the data will help identify traders who failed to report trading cryptocurrencies or when they sold them for currency and used them to pay for goods or services.
The complex nature of the cryptocurrency industry can lead to a real lack of awareness of tax obligations, the ATO has said.
“Furthermore, the ability to purchase cryptocurrencies using false information could make them attractive to those seeking to avoid their tax obligations,” it reads.
You will be asked for personal data including date of birth, phone numbers, social media accounts and transaction details such as bank accounts, wallet addresses and currency type.
Australia treats digital currencies as assets for tax purposes and not as foreign currency. This means that investors would have to pay capital gains tax on profits from the sale of crypto assets and when trading digital assets.
Crypto assets are gaining popularity in Australia. A Treasury report released in 2022 says more than 800,000 Australian taxpayers have transacted in digital assets over the past three years, up 63% in 2021.
(Reporting by Renju Jose in Sydney; Editing by Michael Perry)
Disclaimer: This report is automatically generated by Reuters news service. ThePrint assumes no responsibility for its content.
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