The Australian Taxation Office (ATO) has announced its priorities for the upcoming tax 2022 year and included is a warning for crypto investors to ensure they don’t disregard their tax obligations when it comes to the disposal of digital assets:
Crypto Capital Gains Tax The Target
Crypto capital gains are one of the four priorities for tax time listed in the May 16 media release, with the ATO flagging legal action against anyone guilty of falsifying records or who fails to substantiate their claims:
Tim Loh, the ATO’s assistant commissioner, has stated that while the ATO has a reasonable idea of investor activity, diligence on the part of taxpayers is recommended when it comes to recording transactions:
Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember, you can’t offset your crypto losses against your salary and wages.
Tim Loh, ATO assistant commissioner
NFTs are also within the scope of the assets that must be accounted for, as they will be subject to tax if sold for a profit.
Crypto Taxes in Other Forms
With the 2022 federal election only days away, the policy is being prepared for the regulation of digital assets and artists. NFTs reportedly needed quick policy implementation to prevent a drain on the economy. However, pro-crypto NSW Senator Andrew Bragg has said that such taxing is “inadvertent” and offers no real transfer of value.
June 2021 saw the assembly of a cooperative task force consisting of the ATO, the Australian Securities and Investments Commission (ASIC), the Federal Police, and the Australian Criminal Intelligence Commission (ACIC). Labelled the Serious Financial Crime Taskforce (SFCT), its role is to investigate the circumstances surrounding crypto money laundering, fraud, and tax avoidance.