The Australian Taxation Office (ATO) has issued a warning to cryptocurrency users in the country prior to the next tax campaign, Australian media 7news reports.
According to the news resource, cryptocurrency users who have made profits trading these assets will soon receive a letter from the ATO requesting them to report their profits accordingly. Users who fail to comply with this requirement may face penalties and audits.
Tim Loh, Assistant Commissioner at the ATO, has said:
“We are alarmed some taxpayers think the anonymity of cryptocurrencies provides a license to ignore their tax obligations.”
According to him, while it is true that cryptocurrencies provide some anonymity, the regulator will track any ties between them and the real financial world, that is to say, data from banks as well as any other trace users might leave behind when withdrawing their assets to their accounts.
The ATO is planning to contact around 100,000 crypto holders to remind them their tax obligations.