ATO email Did you dispose of your cryptocurrency?

| Cryptocurrency
ATO email Did you dispose of your cryptocurrency? | Munro's Accountants and Advisors

The ATO have begun sending out emails to taxpayers they suspect have traded in cryptocurrency and may not have reported their capital gains (or losses) appropriately.

 

The email reads:

 

Hello NAME

 

  • Check your records to work out if you need to report a capital gain or loss
  • Revise your income tax return if you have made a mistake

 

Information provided to us indicates you may have disposed of cryptocurrency in the 2018 financial year. If you exchanged cryptocurrency for goods, cash or other cryptocurrencies then this is normally considered a disposal for the purposes of capital gains tax. You may need to include a capital gain or loss in your income tax return.

 

We're giving you the chance to fix any mistakes now. If we audit you and find you haven't reported your capital gain or loss correctly, we may charge you a penalty.

 

What you need to do

 

Check your records to work out if you need to report a capital gain or loss. If you've made a mistake, you need to amend your income tax return by 01 April 2020 to avoid a penalty.

 

You can do this by:

  • using our online services through myGov
  • asking your registered tax agent to make the changes for you.

 

If your income tax return is correct, you don't need to do anything. We'll contact you if we need more information.

 

We have been out and about trying to educate the public about cryptocurrency taxation for many years, including our popular blog Taxation of Bitcoin in Australia published back in 2017.

 

Most recently in January this year we published Your cryptocurrency activity is most likely noted on your ATO profile which was a follow up to What does the ATO know about my cryptocurrency trading? published in May 2019.

 

The point being that as Australia’s GO-TO advisor when it comes to matters of cryptocurrency taxation we have been consistently applying our two simple goals for your betterment:

 

  1. Help demystify crypto tax in Australia so you can make more informed decisions; and
  2. Passionately working every day to reduce tax as much as legally possible – keeping your hard earned wealth in your wallet.

 

We use unique systems and knowledge to calculate cryptocurrency gains and losses to an unrivalled degree of accuracy, including minimising tax as much as legally possible. For instance, see How to save $9,246 in tax on cryptocurrency gains.

 

If you are someone who has received one of these emails and need help with satisfying your tax obligations, please get in contact with us. It would be our pleasure to have the opportunity to make our expertise available to you.

 

Two recent testimonials from our clients:

 

  • 🌟🌟🌟🌟🌟 Drew and the team at Munros have made my cryptocurrency accounting a breeze primarily for tax purposes and to ensure all previous years were reconciled correctly given my previous tax agents literally had no idea despite their knowledge of my crypto holdings for the past 2 tax years. Well done Drew, well done Munros for specialising in this space. Great job!! – Blackwell.

 

  • 🌟🌟🌟🌟🌟 Munro's were able to take complicated tax matters like cryptocurrency trading income for a new company and turn it in to a simple solution for me. Drew has always been amazingly patient and helpful, answering emails quickly and taking the time to respond thoroughly so the matter could be clearly understood. Highly recommended for any tax accounting needs!! – Mastro.