- The ATO is seeking detailed personal and transactional data from up to 1.2 million cryptocurrency accounts.
- This effort aims to identify and address tax compliance issues among users trading or using crypto assets.
- Digital currencies are treated as assets in Australia, subjecting profits from crypto transactions to capital gains tax.
The Australian Taxation Office (ATO) has requested personal and transactional details from cryptocurrency exchanges for up to 1.2 million accounts to enhance tax compliance among users as interest in digital currencies increases.
The ATO announced last month that the data would help identify individuals who have not reported their cryptocurrency transactions, whether these are exchanges, sales for fiat currency, or using crypto to buy goods and services.
The ATO also mentioned that the complexity of the cryptocurrency industry might lead to some traders being unaware of their tax duties.
The office highlighted that the ability to buy crypto assets using false information could attract those who want to avoid paying taxes.
The ATO is seeking personal information including dates of birth, phone numbers, social media accounts, and transactional details such as bank accounts, wallet addresses, and the types of cryptocurrency.
“Also, the ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax obligations.”
Australia’s tax office
In Australia, digital currencies are considered assets for tax purposes, rather than foreign currency. This classification means investors are required to pay capital gains tax on profits made from selling crypto assets and on trades involving digital assets.
The popularity of crypto assets has been increasing in Australia. According to a treasury report from 2022, over 800,000 Australian taxpayers have engaged in transactions involving digital assets in the past three years, with a 63% increase observed in 2021.
