The Australian Taxation Office (ATO) has repeatedly warned its citizens that trades cryptocurrencies to declare profits in their annual revenue due to increased reporting requirements.
According to ATO, greater investor transparency was created by the changes in the Australian Anti-Money Laundering and Anti-Terror Financing Laws, as well as by requiring that digital currency exchanges be recorded at the Australian Transaction Reports and Analysis Center.
Digital assets exchanges are now required to verify the identity of your customers and report suspicious transactions in excess of $10,000.
The spokesman of the ATO has indicated,
“While there is no specific label on the capital gains schedule or income tax return to identify how many people have invested in cryptocurrency we are still looking at lodgement activity this year to determine any significant impact of cryptocurrencies,”
“However, we have observed through our ATO community channel and advice areas an increase in questions relating to tax obligations of cryptocurrency activity, which we see as a positive in people wanting to do the right thing in meeting their obligations.”
How to Report Profits?
The taxpayers who are concerned about how to report their profits made from cryptocurrency activities to the ATO, these are the simple steps officially provided and endorsed by the Australian Taxation Office:
- Keep the records of the date of transactions;
- Show the amount in Australia dollars;
- Name the purpose of the transaction was for;
- Name who the other party was in the trade.
If you follow these reporting obligations above you will be able to rest assured that nobody will stand up to the door and will not ask any additional questions.