Binance Australia has partnered with tax startup Koinly to guide its users on crypto tax reporting, just as the Australian government heats up the call for crypto investors and traders to lodge their 2021 crypto returns.
Binance Steps Up to Assist Users on Tax Report
As a result of the partnership, crypto users on Binance will be able to access Koinly’s ATO-compliant tax reporting solution via an integration. With over 600 exchanges and wallet support, Binance notes that the Koinly tax reporting solution will help users lodge their crypto returns accurately.
The ATO is collecting bulk records data from Australian crypto exchanges and comparing it to amounts entered on previous tax returns. Failure to declare crypto gains can attract a penalty of 75 percent of the outstanding tax liability.Robin Singh, founder, Koinly
Over 300,000 Aussie Crypto Users Are Likely to Report Tax Returns
A significant number of crypto users are expected to report their crypto returns this year. This is not surprising as Australia has seen an upsurge in interest in digital currency.
With approximately one in six Australians investing in crypto, taxpayers and tax agents alike are on a steep learning curve. Our community has voiced their concern around tax compliance and we’re committed to supporting them with the resources they need.Sam Teoh, COO, Binance Australia
In 2020, the Australian Taxation Office (ATO), the country’s principal revenue collection body, issued a reminder to about 350,000 Australian crypto investors on reporting their returns. About 300,000 of those will likely be prompted to lodge their returns, while 100,000 taxpayers already have received a reminder from the ATO.
As it does the sharemarket, the ATO subjects bitcoin and other cryptos to capital gains tax. This year, the tax collection agency has stepped up its efforts to tax crypto gains. Crypto News Australia reported in May that the ATO will data-match transactions on exchanges to prevent “incorrect tax deductions and claims”.
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