Australian Taxation Office wants information from 1.2 million crypto exchange users: Report
The Australian Taxation Office is seeking the personal information and transaction details of up to 1.2 million cryptocurrency exchange users for a possible attack on crypto tax obligations.
The Australian Taxation Office (ATO) said the data would help identify traders who failed to pay their taxes on their crypto assets, according to an announcement seen by Reuters last month.
The ATO is looking for personal information including users' birthdays, social media accounts and phone numbers, as well as transaction-related details such as wallet address, coin trade type and bank account details.
For Australian regulators, cryptocurrencies are taxable assets unlike other foreign currencies. This requires traders to pay capital gains tax on profits from the sale of crypto assets.
News of the potential tax collection lawsuit comes at a time of high profitability for crypto investors. Bitcoin (BTC) is up more than 44% year-to-date, while Ether (ETH) is up 32% year-to-date (YTD).
According to TradingView data, the market capitalization of the top altcoins, excluding Bitcoin and Ether, has grown more than 27% YTD.
According to the ATO notice, the complex nature of the cryptocurrency space can lead to a lack of awareness when it comes to tax obligations.
“The ability to buy crypto assets using false information makes them attractive to people who want to avoid their tax obligations.”
A global crypto tax raid may be coming.
Australia isn't the only country looking to collect unpaid tax on digital asset profits.
On Monday, Canada Revenue Agency (CRA) compliance branch director general Sahil said the agency is investigating more than 400 audits and hundreds of crypto investors for unpaid crypto taxes, according to a May 6 report. In the national post.
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These latest audits result in an estimated $39.5 million in unpaid taxes from the 2023-2024 fiscal year that the Canada Revenue Agency believes are still owed.
In Turkey, the government is expected to propose crypto-related legislation later this year. The new bill is expected to provide a legal basis for the crypto economy in Turkey.
In the United States, regulators are looking to raise the long-term capital gains tax rate to 44.6%, but only for investors who earn more than $1 million a year.
A similar federal budget proposal from the Biden administration included a 25% tax on unearned profits for ultra-high-net-worth individuals.
“For 99.9% of people, it's a big, no-greasy burger because it's just a proposition,” says Matthew Walrath, founder of Crypto Tax Made Easy.
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