ATO warns bitcoin cryptocurrency investors can’t avoid paying tax

[Dark Knight]

Don’t expect to play a game of “hide and seek” and win – that’s the message for the more than half a million Aussies that have cryptocurrency investments.
It comes after the Australian Taxation Office revealed it had extended a partnership with Australia’s cryptocurrency exchanges requiring them to hand over their trading data until 2022-23.

It’s part of a campaign from the ATO, which is out to smash the myth that cryptocurrency gains are tax-free or only taxable when the holdings are cashed back into Australian dollars – and its partnership with exchanges is helping it to target taxpayers.


ATO assistant commissioner Tim Loh warned Aussies that when it comes to crypto investments its “not a game of hide and seek”, with the exchanges offering excellent data-matching capabilities.

“It’s the way we want to go about making sure people comply with their tax obligations in relation to cryptocurrency,” he told news.com.au.

“Cryptocurrency prices have skyrocketed over last 12 to 18 months. In June last year, bitcoin was worth $13,000, in April this year it was $80,000 and today it’s about $46,000. It’s something we know people are going to be investing in more in upcoming years and we want to make sure people understand what their tax obligations are.”

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[Alcor]

In general, it is really unlikely that we will be able to avoid paying taxes. Therefore, if the amount of tax is not set too high, it is better to pay the tax and then sleep peacefully and work further. However, many people will still try to outwit the tax authorities of their country. In this case, the statements of the Australian tax authorities, they refer to the Australian cryptocurrency exchanges to provide them with data on transactions and the identification data of the persons who made them. And if the exchange took place on other exchanges that are located on the territory of other states? There are already about 380 such exchanges? In addition, some of them continue to appear, others disappear and information from them will never reach the tax authorities.