Crypto Crackdown Underway

Crypto crackdown underway as ATO locks in data-matching program

Over 600,000 Australians who have invested in cryptocurrency will  be under the spotlight from the ATO as it extends its data-matching program to 2023.

The ATO’s cryptocurrency data-matching program, , will now scrutinise cryptocurrency transactions and account information from designated service providers for a further three financial years to 2022–23.

The data obtained will identify the buyers and sellers of Crypto assets, with the Tax Office expecting records relating to 400,000 to 600,000 individuals to be obtained each year.

Data items collected by the ATO will include identification details including names, addresses and phone numbers as well as transaction details such as bank accounts, transaction dates and coin type.

According to the ATO, the data will uncover individuals who have failed to report a disposal of cryptocurrency and the appropriate capital gain or loss in their income tax return.

Data collected under the program will be retained for seven years to enable the ATO to cross-reference taxpayer records retrospectively.

Crypto interest has exploded over the past year, with popular currency bitcoin reaching highs of over $80,000 in mid-April. Even dogecoin, a cryptocurrency that started as an internet meme, saw its value spike by 12,000% in May.

The extension of the cryptocurrency data-matching program was registered by the ATO  and comes as the ATO prepares to communicate with over 100,000 taxpayers, ahead of tax time to warn them about their cryptocurrency tax obligations.

While it appears that cryptocurrency operates in an anonymous digital world, it can be closely tracked where it interacts with the real world through data from banks, financial institutions and cryptocurrency online exchanges to follow the money back to the taxpayer.

If you have bought or sold any Crypto currency and need help in recording or declaring to the ATO, please contact our office – (08) 8431 1644.

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