In response to growing stress from local tax authorities, the Australian office of prominent digital currency exchange Binance has improved customers’ ability to correctly disclose tax liabilities.
Binance has teamed up with Koinly, a digital currency tax company, to help customers dealing with rapidly increasing tax responsibilities in Australia. Via the collaboration, Binance customers in Australia will have access to Koinly’s tax reporting service.
Koinly was launched in 2018 and now serves over 600 platforms and wallets, allowing customers to sync their entire digital currency trading history with a single ATO-compliant platform.
The announcement comes as the Australian Tax Office (ATO) ramps up its efforts to levy taxes on income from investing in digital currency. The ATO sent a notice to 350,000 digital asset owners and holders in July of the previous year about unreported cryptocurrency profits.
The ATO stepped up its efforts in May 2021, telling 100,000 Australian cryptocurrency users to declare all earnings on their tax returns, with another 300,000 individuals anticipated to be reminded when they file their taxes. In recent years, it is believed that over 600,000 taxpayers have participated in the sector of crypto assets. The Australian Tax Office utilizes data matching with platforms to identify consumers who may owe taxes.
Koinly creator Robin Singh said:
“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% of the outstanding tax liability.”
Binance is also stepping up its educational attempts in Australia, holding an end-of-year tax seminar on July 22 in cooperation with Koinly.
“With approximately one in six Australians investing in crypto, taxpayers and tax agents alike are on a steep learning curve.” according to Sam Teoh of Binance Australia, adding that the digital currency investors have been concerned with the tax compliance in this country.
Australians aren’t the only ones who are being watched by the tax authorities. In late May, the US Treasury suggested that cryptocurrency transactions worth over $10,000 be disclosed to the Internal Revenue Service.