In the latest statement, the taxation ministry in Australia has once again reminded crypto investors to report any gains on their crypto. Reportedly, the government also plans to send warning letters to more than one hundred thousand crypto investors and asking them to recheck their earlier lodgings.
Besides that, as more people file their lodging their this year’s returns. Plus, the tax office further revealed that according to the data collected by one of Australia’s largest trading platforms, more than 600,000 people have started investing their money in digital assets in recent years.
In Australia, virtual currencies are seen as an alternative investment asset. Yet, these are subject to the national capital gains tax, just like other investments. While talking to the media outlets, Tim Loh, a top official of the Taxation Department, said,
We are alarmed that some taxpayers think that the anonymity of cryptocurrencies provides a license to ignore their tax obligations.
Meanwhile, the Australian accountants who specialize in the new currency have welcomed the decision and acknowledged that some aspects of law surrounding digital assets are confusing.
Besides that, the TO further stated that it would especially target those who had intentionally tried to avoid their taxes on cryptocrypto gains, while it would be lenient to those who just made an error. However, if an investor fails to report their gains, they could face 25 to 95 percent tax shortfall with interest added.