The ATO extends data matching to cryptocurrency – ZDNet

Stacked cryptocurrency coinsImage: Getty Images

The Australian Taxation Office (ATO) will now have oversight over the digital currency held by Australians, with the overarching idea being to ensure that individuals in possession of cryptocurrency are paying the right amount of tax.

The ATO will be collecting bulk records from Australian cryptocurrency designated service providers (DSPs), with the government entity kicking off a data-matching program that will see DSPs hand over information on cryptocurrency purchases and sales to aid its investigations.

“The ATO uses third party data to improve the integrity of the tax system by identifying taxpayers who fail to disclose their income details correctly. We also use third-party data to assist taxpayers in meeting their tax obligations through pre-filling of tax returns,” Deputy Commissioner Will Day said, noting the data will make up a key element of the ATO’s compliance program.

“This data will be collected under notice from the DSPs on an ongoing basis.”

The ATO estimates that there are between 500,000 to one million Australians that have invested in crypto-assets.

Buy a Crypto Miner

AdSense