Do you have Cryptocurrency? ATO is watching you.
Cryptocurrency Data Matching Program
Do you have cryptocurency? Have you invested in that or just used it to purchase stuff on internet? Have you considered investing in cryptocurrencies in your SMSF? You need to know that the ATO has also noted that cryptocurrency can be considered a “high risk, volatile investment”, and they have already seen incidences of SMSFs losing significant amounts of their retirement savings.
They strongly recommend all trustees undertake their own investigation and appropriate due diligence before investing with any organisation investing super assets into cryptocurrency holdings.
Here comes the most important part: The ATO is collecting bulk records from Australian cryptocurrency designated service providers (‘DSPs’) as part of a data matching program to ensure people trading in cryptocurrency are paying the right amount of tax, and correctly meeting their tax (and superannuation) obligations.
The ATO will collect data from cryptocurrency DSPs to identify individuals or businesses who have or may be engaged in buying, selling or transferring cryptocurrency during the 2014/15 to 2019/20 financial years (the ATO estimates that there are between 500,000 to one million Australians that have invested in crypto-assets, including SMSF trustees).
So, if you are one of them, tell us when you come to see us for your tax returns.