The Australian Taxation Office (ATO) is officially starting to go after crypto traders who did not pay their taxes this year. According to the office, people who did not file for their crypto earnings are expected to pay $3 billion AUD in fines.
With the price of crypto going up this year, many people will be expected to pay on their crypto gains. The government is set to partner with both international and local crypto trading platforms to discover if people are not filing their taxes.
Many people believe that crypto transactions are untraceable, which is not the truth. In fact, they are very easy to track with the right software and the government can do it to discover who is evading its tax responsibilities.
Bulk data will be collected from exchanges to identify who is paying their taxes and who is not. Around 4% of the people in Australia have owned crypto at least once.
Now, the government believes that a lot of people did not report their earnings, so they will need to pay their taxes plus the fines, which can be very high in some cases. In the most severe cases, people can even go to jail for not paying their taxes if they are believed to be omitting them consciously.
When declaring crypto taxes, it is important to remember to pass all the important information to the government in order to avoid fines. Declaring even losses is a good idea, as the losses can be used as discounts for profitable trades.