In the current tax period, the Australian tax office (ATO) intends to take a tough stance against the cryptocurrency investors. The service had recently declared that they are going to use international agreements for the exchange of data to track tax liabilities cryptocurrency traders.
«We are aware of the possible risks legal compliance related to cryptocurrency, but that doesn’t bother us,» said Deputy Commissioner ATO Martin Jacobs (Martin Jacobs).
«If people are intentionally trying to evade these obligations, we will take action,» he added.
Jacobs also stressed that anti-money laundering rules are binding on Australian cryptocurrency exchanges, authorize the exchange to gather information about cryptocurrency transactions that the ATO will be able to use in their work.
However, many users of cryptocurrencies in Australia may not be fully aware of their tax obligations. People believe that getting income is not taxed.
The representative of the auditing company CPA Paul Drum (Drum Paul) said that cryptocurrency users are required to declare all profits made.
«Even if you have traded ripple bitcoins, you need to calculate whether you in this transaction, any profit,» he says.
ATO criticized for the opacity of taxation
The Australian law firm Hall and Wilcox Adam dimac (Adam Dimac) indicates the lack of clarity around the ATO proposed regulation and States: «There are many technical problems in relation to which there are no instructions. One example of supply tokens (ICO). From the point of view of taxation, in fact, there is no guidance on how to handle them. This is a new area».
Laura Spencer of the law firm Sladen Legal also believes that the ATO does not provide detailed instructions on the taxation of cryptocurrency investors, stating that «insufficient instructions and the lack of court practice in this area of taxation leaves the users of cryptocurrencies in great uncertainty».