The Australian Tax Office has urged citizens to accurately report any profits made in the process of trading cryptocurrencies like Bitcoin (BTC), as it anticipates tax filings from a pool of 600,000 Aussies who it now believes to be invested in digital assets.
The ATO’s assistant commissioner, Tim Loh, told news.com.au that people still made the mistake of treating crypto like a currency as opposed to an asset. The ATO wants to rid citizens of the myth that cryptocurrency profits are tax free, or that they only need to be declared when cashing back out to fiat money.
Loh said the tax office was already aware of who was invested in cryptocurrency thanks to the cooperation it had received from exchanges and banking institutions.
“(We) follow the money trail back to the taxpayer and we do that through the ATO which has data matching profiles with cryptocurrency exchanges and they provide that information to us and we use that information to cross