It is a well-known fact that many cryptocurrency traders all over the world try to evade taxes. This is not due to the intent of evading the taxes but because of the complicated rules and regulations or lack of them pertaining to cryptocurrencies. That is why many of the crypto traders do not even know how they have to disclose their income.
Australian tax office becoming stricter:
It seems like Australian tax office is finally pulling up its socks in order to stop this evasion. They are using 100 different points in order to track the capital gains of the crypto traders. As a result, they are able to go after them and make them pay the taxes along with the penalties as well.
Also, they are forcing the crypto traders as well as investors to include the cryptocurrency gains in the taxable income. As a result, they are trying to make them pay tax on the cryptocurrency gains. Currently, there are no clear rules regarding the payment of capital gains tax on cryptocurrencies. That is why the traders are not able to decipher easily whom they have to pay.
With the help of 100 point check, the Australian tax office is making sure that each and every cryptocurrency investor is paying tax. If indeed, they are not paying tax, the Australian tax office will be investigating them pretty soon. As a result, they are increasing the compliance significantly.
Also, the Australian tax office is flagging each and every transaction which involves cash over AU$ 10,000. This is again letting them know about the local Bitcoin transactions which are taking place as well. It seems like finally, the Australians will have to pay cryptocurrency taxes in proper amounts in order to comply with the law.
Many of the other countries as well are getting more serious about tax evasion with the help of cryptocurrencies. They are constantly trying to track down individuals who are not paying taxes on their cryptocurrency gains. Only when the authorities become more aware of the modus operandi of the crypto traders, they will be able to flag of such transactions more easily.
It is time that the cryptocurrency traders pay their due taxes without trying any kind of evasion. Since the amount of money which many of them have made is exponential, it is a good idea to pay all the taxes and avoid any legal trouble henceforth. This will not only help them comply with the rules and regulations but also help them trade in future without any obstacles.
