Australia to Levy Taxes on Cryptocurrencies
June 20, 2018
Tax experts of Australia have confirmed that Australian Taxation Office (ATO) plans imposing taxes on crypto operations for local market players.
The issue was first rumored about in March this year when the ATO spokespersons declared, the agency is going to enable data gathering tools and ID methods like bilateral tax contracts and AML solutions soon to find and identify crypto investors for further taxation of their crypto revenues.
Chief tax agent at tax software developer Etax Liz Russell told that now the ATO is improving technologies to find crypto tax payers and define the payments.
ATO considers cryptocurrencies as assets so the trade profits will be regulated in accordance with the local law on capital gain taxation. As the agency notes, corresponding tax returns will cover the period from July 1, 2017, to June 30, 2018, and must be submitted on or prior to October 31 this year.
Russell stresses that BTC price was at its highest early January and then began to decline so crypto investors could gain profits or suffer losses over this time. Consequently, he believes that funds losses caused by cryptocurrency exchanging can be deducted from the taxed income gained via trading other assets like shares and investment instruments. Exception is crypto holder using digital money to pay for actual goods and services.
Mark Chapman, the head of H & R Block Australia tax service, also confirmed the rumors on the upcoming taxation for crypto traders in the country:
“The ATO is really looking at that [cryptocurrencies] as a big risk area, because it’s new and people don’t understand the tax implications.”