The Australian Tax Office reportedly has requested that cryptocurrency exchanges share both personal and transaction details of as many as 1.2 million cryptocurrency users. The revenue collector recognized that some users are fulfilling their tax obligations unknowingly, but maintained that others are intentionally avoiding payment.
Australian Tax Office Targets 1.2 Million Cryptocurrency Users
The Australian revenue collector has reportedly asked cryptocurrency exchanges to share the personal and transaction details of at least 1.2 million users in an effort to recover unpaid taxes. According to a report, the Australian Tax Office (ATO) is targeting users who failed to disclose profits earned from trading crypto assets or when converting from crypto to fiat.
Reports that the ATO is cracking down on tax defaulters in the crypto space are coming at a time when cryptocurrencies are gaining popularity among Australians. In addition to targeting Australian residents, the revenue collector is collaborating with counterparts in countries such as Indonesia. As reported by Bitcoin.com News, this collaboration enables the tax bodies of the two countries to share knowledge and exchange data on crypto assets.
However, in a recently published notice, the ATO acknowledged that the crypto industry’s “complex nature” could mean that many users may not be aware of their tax obligations. Despite this, the revenue collector still claimed that some crypto users are intentionally avoiding paying taxes.
“Also, the ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax obligations,” the ATO said.
According to the report, the revenue collector is seeking personal details, including users’ dates of birth, phone numbers, and social media accounts. The Australian Tax Office (ATO) also wants cryptocurrency exchanges to provide transaction details, such as wallet addresses and the type of coin, the report said.
Under Australian tax law, cryptocurrencies are treated as assets. This classification requires users to pay capital gains tax on profits earned from trading digital currencies.
Source: Bitcoin
