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Source: TAXDAO
ATO first disclosed the encrypted asset data matching plan in April, which aims to assist traders who have not reported their cryptocurrency transactions.On May 7, according to Australia Reuters, the Australian Taxation (ATO) issued a notice to the cryptocurrency exchange last month, requiring the cryptocurrency exchanges to provide more than 1.2 million personal data and transaction details of accounts.
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ATO promotes tax compliance by using external data and internal data to crack down on those who try to evade taxpayers.Ensure that relevant traders comply with the capital gain tax obligations of cryptocurrency transactions.
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This move is part of the greater efforts of strengthening the review after the FTX closure, including prosecuting illegal token sales and considering a new license to the cryptocurrency exchange.
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ATO has expanded its scope of tax supervision, which reflects that Australia is committed to adjusting regulatory measures to adapt to changing cryptocurrencies.
1 main content
The data matching plan is aimed at individuals who inaccurate the income of cryptocurrency -related income to evade taxpayers and strengthen the tax compliance of the cryptocurrency industry.The cryptocurrency exchange account provides its personal and transaction data.
The ATO requires the cryptocurrency exchanges to provide personal information and trading details of the name, address, birthday, and other personal information of trading personnel. Personal data includes transaction details such as the date of birth, telephone number, social media account, bank account, wallet address and token type to helpWhether its audit follows the obligation to pay sales of sales capital.These data will help identify traders who have not reported their cryptocurrency -related activities, including encrypted asset exchange activities carried out when selling cryptocarious assets in exchange for currency or using crypto asset payment products and services.
In addition, there are some punishment measures. ATO will sue to sell token entities without appropriate permits and cooperate with bank partners to prevent payment to cryptocurrency exchanges.In addition, ATO is currently considering formulating a new license framework for cryptocurrency exchanges.
2 Why do you implement the data matching plan?
The complexity of the encryption industry may lead to a lack of real understanding of taxpayers. In addition, the ability to use false information to purchase encrypted assets may make them attractive to those who try to evade taxpayers.
ATO can understand the impact of taxation and formulate appropriate regulatory response measures by obtaining relevant data for cryptocurrency transactions.At the same time, the encrypted asset data matching plan will make ATO clearly identify and solve multiple tax risks:
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Reporting Capital Equipment Tax (CGT) oligimerly —— if cryptocrystal assets are purchased as investment, investors need to pay any capital income for any capital income obtained when dealing with cryptocurrencies::
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Sell encrypted assets in exchange for legal currencies
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Exchanging one type of encryption asset to another encryption asset
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Gift -encrypted assets
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Transaction encryption asset
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Use encrypted assets to pay products or services
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Illegal or incorrect income report -In some cases, encrypted transactions may also generate ordinary income.The taxpayer of the transaction encryption asset or the company that accepts encrypted assets as a payment is obliged to report the income generated by the tax declaration form.
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Reporting goods and service tax (GST) oligimer (GST) —— In some cases, encrypted transactions may generate GST.GST registered enterprises that accept crypto assets as payment must conduct GST descriptions of their supply and declare these in their business activities statements.The supply provided by some encrypted intermediaries may need to pay GST and may need to register GST.
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Reporting additional benefits (FBT) oligimerly — when employees obtain encrypted assets as remuneration based on salary sacrifice arrangements, the payment of encrypted assets is an additional benefit.
With the increasingly popularized assets in Australia, in order to ensure the loss of tax revenue in the cryptocurrency field, ATO is necessary to obtain personal information and transaction details for cryptocurrency transactions.
3 Policy dynamic evaluation
This policy is part of the strategy of ensuring the obligation to obey the capital of cryptocurrency -related transactions.Can promote the integrity of tax compliance and maintain the tax system.At the same time, the supervision and management of the cryptocurrency field can be strengthened, and the transparency and accountability system in the cryptocurrency field can be enhanced.The new data matching plan of ATO directly solves the problems of leakage or inaccurate capital gains tax, income tax, commodity and service tax (GST) and additional welfare tax (FBT) related to cryptocurrency transactions.
This policy will provide ATO with exact information about cryptocurrency traders activities, which can crack down on cryptocurrency traders trying to evade taxes, curb tax evasion and ensure that all taxpayers enjoy a fair competitive environment.
However, the strict requirements of ATO may cause concerns about cryptocurrency investors and exchanges.The demand for such extensive data not only triggers privacy issues, but also brought a heavy compliance burden to the exchange.In addition, the possibility of punishment for violations also adds another level of concerns to individual traders and platforms; but this also represents the efforts of Australia’s aim to strive for fair taxation by using data analysis and technological progress.
