Wednesday, 01 May 2019 08:27

ATO plans crackdown on people trading in cryptocurrencies Featured

ATO plans crackdown on people trading in cryptocurrencies Image by Miloslav Hamřík from Pixabay

The Australian Taxation Office plans to use data matching to crack down on Australians trading in cryptocurrencies and not paying the correct amount of tax.

In a statement issued on Tuesday, the ATO said it was collecting bulk records from authorised cryptocurrency traders - what the ATO refers to as designated service providers or DSPs - in the country, and it would form a key element in the agency's compliance program.

Deputy Commissioner Will Day said: “The ATO uses third-party data to improve the integrity of the tax system by identifying taxpayers who fail to disclose their income details correctly.

"We also use third-party data to assist taxpayers in meeting their tax obligations through pre-filling of tax returns. This data will be collected under notice from the DSPs on an ongoing basis,”

The ATO said there had been a significant amount of growth in the uptake of crypto-assets and estimated that between half a million and a million Australians had invested in these currencies.

"Cryptocurrency and blockchain technology is seen as an enabler of existing risks for the ATO," the agency said.

"Cryptocurrency has been used to move funds within the black economy, hide money offshore, and is sometimes linked to risks with unexplained wealth and undeclared taxable capital gains."

The Australian Transaction Reports and Analysis Centre and the Australian Securities and Investment Commission will also be helping the ATO to ensure tax law requirements "align with a whole of system approach".

"The ATO is also working in a joint international effort as part of the Joint Chiefs of Global Tax Enforcement, aimed at investigating cryptocurrency-related tax evasion and money laundering,” Day said.

After the data matching is done, people may be contacted and allowed to verify the information collected, before any compliance action is undertaken. They will be given at least 28 days for clarifications.

“We want to help taxpayers to get it right and ensure they are paying the correct amount of tax,” Day said. “Where people find that they have made an error or omission in their tax return they should contact the ATO as soon as possible. Penalties may be significantly reduced in circumstances where we are contacted prior to an audit.”

The statement said taxpayers could correct a mistake by requesting a self-amendment or making a voluntary disclosure. The ATO's data-matching strategies are detailed here.

Subscribe to ITWIRE UPDATE Newsletter here

Now’s the Time for 400G Migration

The optical fibre community is anxiously awaiting the benefits that 400G capacity per wavelength will bring to existing and future fibre optic networks.

Nearly every business wants to leverage the latest in digital offerings to remain competitive in their respective markets and to provide support for fast and ever-increasing demands for data capacity. 400G is the answer.

Initial challenges are associated with supporting such project and upgrades to fulfil the promise of higher-capacity transport.

The foundation of optical networking infrastructure includes coherent optical transceivers and digital signal processing (DSP), mux/demux, ROADM, and optical amplifiers, all of which must be able to support 400G capacity.

With today’s proprietary power-hungry and high cost transceivers and DSP, how is migration to 400G networks going to be a viable option?

PacketLight's next-generation standardised solutions may be the answer. Click below to read the full article.


WEBINAR PROMOTION ON ITWIRE: It's all about webinars

These days our customers Advertising & Marketing campaigns are mainly focussed on webinars.

If you wish to promote a Webinar we recommend at least a 2 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site and prominent Newsletter promotion and Promotional News & Editorial.

This coupled with the new capabilities 5G brings opens up huge opportunities for both network operators and enterprise organisations.

We have a Webinar Business Booster Pack and other supportive programs.

We look forward to discussing your campaign goals with you.


Sam Varghese

website statistics

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News