Australia’s tax regulator said cryptocurrencies are one of the key focus areas this way.
The Australian Taxation Office (ATO) announced that it will focus on digital assets this year.
The regulator expects Australians to report a capital gain or loss on their tax returns.
Capital gain or loss is the difference between the price of an asset at the time of purchase and the price at the time of disposal. According to the ATO, a divestiture occurs when the digital asset owner uses its holdings to acquire goods or services.
ATO’s Tim Loh said the regulator is aware that many Australians deal with cryptoassets, so it’s important for people to understand their tax obligations in order to report taxes accurately.
The Regulator requires that transactions be recorded, regardless of what the cryptos are used for.
The ATO also noted that investors could face a tax penalty if they knowingly misreported capital gains.
