Australia’s Tax Office Targets Bitcoin Investors, Report SaysMarch 5, 2018 11:17 pm
Australia’s Tax Office (ATO) is closing loopholes in investments in cryptocurrencies like bitcoin, Cryptocoinsnews reported Monday.
Cryptocurrency, the report said, is just one area receiving increased attention, along with work expenses and incorrect claims.
Citing budget costs of more than $2.5 billion a year, H&R Block’s director of tax communications Mark Chapman told reporters the three highlighted categories were areas where there had been an increase in “systemic abuse,” the report said.
Authorities said they will begin using 100-point identification checks to implement data-matching techniques in order to investigate cryptocurrency investors, the report said.
Chapman labeled the subject a “murky area,” with many people unaware of current regulations.
He said: “A lot of people simply aren’t aware of their tax obligations — cryptocurrency is a Wild West area with regards to tax — but it’s essential to be aware that there are potential tax obligations surrounding capital gains and income tax, depending on if you are investing or trading.”
Earlier this year, the ATO provided guidance on the issue, the report said. The document outlines how cryptocurrency (specifically Bitcoin) is not seen as money or foreign currency, Cryptocoinsnews reported, it is viewed as an asset subject to capital gains tax.
– WN.com, Jack Durschlag