Australian Tax Authority Will Compel Crypto Trading Platforms to Hand Over Users Records- Accurate Reporting Advised

The Australian Taxation Office (ATO) has announced it is collecting, “bulk records from Australian cryptocurrency designated service providers (DSPs) as part of a data matching program to ensure people trading in cryptocurrency are paying the right amount of tax.”

Data pertaining to the sale and purchase of cryptocurrency, “will be collected under notice from the DSPs on an ongoing basis,” said Deputy Commissioner, Will Day.

An estimated 500,000 to one million Australians believed to be trading cryptocurrencies may be affected.

ATO is also concerned about other malfeasance :

“Cryptocurrency and blockchain technology is seen as an enabler of existing risks for the ATO. Cryptocurrency has been used to move funds within the black economy, hide money offshore, and is sometimes linked to risks with unexplained wealth and undeclared taxable capital gains.”

People responsible for them have a number of ways to rectify reporting discrepancies:

Following the data matching exercise people may be contacted by the ATO and given the opportunity to verify the information collected, before any compliance action is undertaken. People will be given at least 28 days to clarify any information that has been obtained from the data provider.”

As well:

“Where people find that they have made an error or omission in their tax return they should contact the ATO as soon as possible. Penalties may be significantly reduced in circumstances where we are contacted prior to an audit.”

ATO promises support and encourages willing cooperation:

“People can correct a mistake by requesting a self-amendment or making a voluntary disclosure, and can also contact us if they need help paying their tax.”

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