Crypto exchange platform Crypto.com has recently launched a tax reporting service that is free of cost for consumers based in Australia.
In an announcement posted today, the platform revealed that it had customized its pre-existing tax services for cryptocurrency users based in the United States and Canada to enable Australians to correctly report digital currencies on their taxes. The exchange revealed that it joined hands with qualified tax advisers to guarantee that the service was stable with laws for filing crypto taxes in the nation.
The platform enables consumers to introduce their cryptocurrency transaction data into a tax reporting platform like TokenTax and produce a report that would be organized with the authorities, i.e., the Canada Revenue Agency, the Internal Revenue Service in the USD, and the Australian Tax Office, also referred to as ATO. The exchange states that it provides this new service at zero cost to consumers, regardless of whether they choose to report losses or gains.
Nevertheless, it is likely that cryptocurrency users need to have accounts, i.e., ones within compatible exchanges and wallets to offer a full-fledged tax record for the officials. Crypto.com at present enables users registered with Kraken, Coinbase, Binance.US, Binance, BitBuy, as well as others to get the most out of the tax reporting service.
Much like in the US as well as other countries, Authorities in Australia contemplate liquidating cryptocurrency holdings as an investment gains event in numerous cases to be taxed consequently. Virtual currencies utilized as payment methods for products and services in Australia are not taxed under income, granter the cost is below 10K AUD or approximately 7,340 USD.
Earlier in May, the Australian Tax Office issued a warning for any cryptocurrency users registering taxes in Australia to correctly report any profits experienced. Tim Loh, the ATO’s assistant commissioner informed a source that even now, individuals still treat digital currencies like regular currencies as opposed to assets. The ATO, thus, aimed to open the citizens’ eyes to the myth that crypto profits are excluded from tax, or that they need to be declared only when they are being withdrawn as fiat money.
At that time, the government bureau stated that it had expected that 600K Australians who bought into virtual assets would be filing taxes and aimed to contact 400K others in order to enable them to review any past registered tax returns for any likely inconsistencies.