Following a soft debut of its ‘Crypto.com Tax’ service in Canada and the United States, the Hong Kong-based company is now bringing it to Australia, in order to help Australian cryptocurrency investors meet their tax responsibilities.
Cryptocurrency investors in Australia can now import transaction records by CSV files or API synchronization from more than 20 supported wallets and exchanges.
As crypto use grows, Australia and other jurisdictions across the world have made tax reporting on virtual currencies mandatory.
The move demonstrates how regulators are not only concerned with combatting bitcoin crimes, but also with pursuing those who use cryptocurrencies to hide their wealth or avoid paying taxes.
This isn’t new, but it’s gotten a little more tricky in recent months as a growing market turned some crypto dealers into millionaires almost overnight.
Crypto.com Tax simplifies the entire process of submitting complex crypto taxes by using country-specific computation methods.
This free service allows users to create well-organized crypto tax reports, which can then be downloaded and used for tax filing.
Crypto.com claims to have worked with expert tax consultants to verify that the calculation methodology adheres to current recommendations and rules for submitting crypto taxes in each supported location.
We’re excited to expand our free-to-use crypto tax reporting service to Australia. We have long been committed to offering the most compliant and easy to use the crypto platform in the world. As part of that commitment, we are proud to offer all Australian crypto investors an easy solution to filing their taxes. More markets will be added soon,” said Kris Marszalek, co-founder and CEO of Crypto.com.
In March 2021, Crypto.com published its own cryptocurrency tax calculator. Its initial supported jurisdiction was Canada, which was followed by the US and now Australia, with intentions to expand to other markets.
Although the renowned exchange and payment platform did not specify which country will be next, it is likely that they will concentrate on the locations where the majority of their consumers reside.
Crypto.com, which was founded in 2016, is a one-stop-shop for all cryptocurrency transactions. They’re now offering their users the option to automate their tax file in order to appear to anticipate tax reporting obligations in several nations.
The Australian Taxation Office is requiring investors to declare their operations in order to verify tax conformity, threatening them with penalties if they fail to reveal revenue from their crypto holdings.
Thousands of taxpayers have already received advice in the mail or via email on how to appropriately record cryptocurrency-related income and, if necessary, revise their taxation returns.
For income tax reasons, the Tax Office still considers crypto assets to be property rather than a form of money, as it did when its regulatory guidance was issued years ago.
As a result, the ATO will continue to tax cryptocurrency profits and losses in the same way it taxes stocks. As a result, digital asset dealers may owe corporation tax, income tax, or capital gains tax, depending on their operations and transaction type.
The government has gone a step further, hinting that it uses data from local banks to keep track of where crypto dealers interact with the real world. The Australian Taxation Office also extended collaboration with the country’s cryptocurrency exchanges and brokers until 2022-23, requiring them to pass over data on all customer transactions, regardless of value.
