Australians were reminded by their top tax authority that their crypto and non-fungible token gains are also subject to corresponding taxes.

This reminder was released by the Australian Tax Office (ATO) and also added that the crypto world’s anonymity is not an excuse for citizens to bypass their tax responsibilities.

ATO also highlighted that gains from cryptocurrency and NFTs are also covered by the Capital Gain Tax or CGT.

On top of these reminders, the Office also made it clear that there was no truth to the rumors that gains from crypto transactions can only be taxed when holdings are cashed back into AUD or Australian dollars.

Anonymity is not an excuse

Even with the anonymity that crypto transactions provide, ATO has a solution in place to track crypto users who are required to pay taxes.

The ATO can track cryptocurrency transactions through financial institutions, cryptocurrency online exchanges, and banks.

In this way, the Office can trace back these transactions back to the users. (What a fine way of saying: “Back to you”).

ATO also has a system that can accurately match the data from crypto service providers to individuals’ tax returns.

This measure would make sure that citizens who are using cryptocurrencies are paying their taxes correctly.

Australians know ATO’s reminders shouldn’t be taken lightly

The ATO has already proved its seriousness in its mandate to prompt citizens to pay their taxes. It means business.

In 2020, the ATO contacted 100,000 Australians who had participated in cryptocurrency trading and prompted them to pay their taxes.

This year, ATO expects to prompt more taxpayers (who had a history in crypto trading) to pay their taxes required by the law.

Image courtesy of Cointelegraph News/YouTube

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Source: https://bitcoinerx.com/blockchain/australian-crypto-traders-reminded-to-pay-their-taxes/