The Australian Tax Office (ATO) is starting to bust cryptocurrency tax dodgers after more than 600,000 Aussies invested in digital currencies recently.
Talking to news.au.com, ATO’s assistant commissioner, Tim Loh said that the federal tax office is ‘alarmed’ as many crypto investors have the false perspective that the anonymity in cryptocurrencies will help them bypass tax obligations.
He revealed that the tax agency is tracking cryptocurrency transactions using the data collected from banks, financial institutions and cryptocurrency exchanges.
“[We] follow the money trail back to the taxpayer, and we do that through the ATO which has data matching profiles with cryptocurrency exchanges, and they provide that information to us, and we use that information to cross-match with people’s tax returns,” Loh said.
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