Cryptocurrency: Potential $1.5b in missing ATO tax from bitcoin, ethereum, binance profits

Is that brother-in-law of yours who loves to brag about the amount of money he made on bitcoin one of the potential 300,000 Aussies yet to report their cryptocurrency to the ATO?

If so, he may be contributing to a staggering amount of potentially more than $1.5 billion in unreported crypto profits to the Australian Taxation Office.

What’s even more alarming: $1.5 billion is on the very conservative end of what that amount could actually be, according to a simple calculation using reliable data.

The calculation

Crypto tax software company Koinly shared some recent survey findings, that of the approximate 1.5 million Aussies dabbling in crypto, there are potentially 200,000-300,000 yet to report their crypto to the ATO.

Australian-based cryptocurrency exchange Swyftx revealed findings in its latest report that 72 per cent of those Australians investing in crypto had an average profit of $11,013 on their investment last year.

Even using the lower end of these stats, 72 per cent of 200,000 people is 144,000 people, the number of people we can assume made an average profit of $11,013.

Let’s take those 144,000 people and be conservative assuming they made no more than the average amount of $11,013, that still equates to over $1.5 billion in crypto profit not reported to the tax office.

Considering the fact that many Aussies have had greater returns than the average amount of $11,013, the total unreported to the ATO could be significantly higher.

Why is it important to report your crypto?

You’re probably wondering, why does it matter if I report my crypto or not?

The simple answer: The ATO already knows you own crypto.

A spokesperson for the tax office said despite crypto appearing “anonymous”, the ATO can track money trails back to taxpayers through data from banks, financial institutions and crypto asset online exchanges.

Koinly Australia head of tax Danny Talwar described the ATO data matching program as “comprehensive”, which find “anomalies” reported in tax…

Read more at news.google.com

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