May 22, 2024
Tax Data from crypto investors
Policy & Regulation

Australia Targets Crypto Investors to Combat Tax Evasion

Australia’s tax authorities are reportedly zeroing in on over a million cryptocurrency investors, aiming to obtain their transaction details and personal details from crypto exchanges. As per Reuters’ report citing an April notice from the Australian Taxation Office, the move is aimed at combating tax evasion amid the rising interest in cryptocurrencies.

Crucial Information Sought

The tax office’s notice suggests that up to 1.2 million accounts are being targeted. It highlighted concerns over the use of fake information to purchase crypto assets, which could facilitate tax evasion.

While the specific exchanges under scrutiny remain undisclosed, the tax agency’s request encompasses a wide range of personal details. These include dates of birth, phone numbers, and social media profiles.

Taxation Framework and International Cooperation

Australia taxes cryptocurrencies as assets, subjecting investors to capital gains tax on profits derived from selling or trading these assets.

The tax rate varies based on the capital gains, with a 50% discount applicable to income earned from disposing of crypto held for longer than 12 months.

Additionally, this development follows a recent agreement between tax officials from Indonesia and Australia to establish a framework for sharing crypto information. This move aimed at enhancing asset identification for taxation purposes.

Furthermore, Australia is collaborating with other nations to develop the Crypto-Asset Reporting Framework (CARF). CARF aims to standardize the taxation of cryptocurrencies globally by facilitating automatic information sharing about crypto transactions.

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