ATO to target Crypto Currencies this tax season
The ATO has a new target in its sights this year – Bitcoin and other crypto currencies are firmly in the sights of the ATO’s audit team and investors are warned to have their paperwork in order or face hefty fines. Avoidance of obligations is no defence the ATO warns.
The ATO is now receiving financial intelligence data from AUSTRAC, with recent changes to the anti money laundering counter terrorism financing act allowing the provision of data. This data identifies participants in these markets where income may be subject to capital gains and this is now the target of ATO audit teams.
Says PJT Director Wayne Patten "Crypto currencies are becoming an increasingly popular investment in self managed superfunds, and we're seeing an increase in this type of investment with our clients. Those engaged in crypto activities will attract a high ATO risk rating, and direct contact with the audit teams is highly likely. If you are investing in crypto currencies, we urge you to make contact with your PJT Accountant to discuss the ramifications and how to manage disclosure of this income to avoid penalties."
PJT clients who may be investing in Crypto Currencies are urged to make contact with their PJT accountants before June 30.