Moore Australia today welcomed the announcement of the new ATO
data matching programme, geared at cryptocurrency. The data matching programme will obtain client identification details and transaction details from cryptocurrency designated service providers, and will extend to the 2023 financial year.
Davide Costanzo, Chairman of the Moore Australia Tax Committee commented: “We welcome these changes, which aim to bring further transparency and insight into the cryptocurrency market and ensure anyone buying, selling or trading in cryptocurrency is clear of their reporting obligations.”
The announcement follows Moore Australia’s
statement earlier this month, reminding Australians to be aware of their tax obligations surrounding cryptocurrency.
Davide Costanzo adds:
“Individuals and businesses often wrongly assume that income from cryptocurrency trades does not incur tax. However, the truth is that more often than not, there is a tax obligation, and people need to be aware of how their income is taxed.”
Broadly, like any other asset such as property, there are three main ways in which cryptocurrencies may be taxed:
- Under the Capital Gains Tax (CGT) regime as a CGT asset (i.e. if it’s an investment);
- On revenue account as trading stock if you are a cryptocurrency trader; or
- On revenue account as a revenue asset if you purchased the cryptocurrency with a profit-making intention.
Individuals or businesses who are unsure of how their cryptocurrency income may impact their ‘end of financial year statement’ are recommended to seek the advice of a tax advisor.