More than 330,000 cryptocurrency owners are unlikely to have budgeted for their required tax payments and could find themselves in a tight financial spot if the taxman comes knocking.
A recent study by the University of Queensland found that more than one million Australians owned cryptocurrency, yet only 66% knew they needed to pay tax if they sold their coins for a profit.
Eight percent reported not knowing that selling their cryptocurrencies would result in a “taxable event” while 25% said they were unsure about the tax consequences of buying and selling crypto assets.
The study said that, since the rise in finance apps and opportunities to invest online, Australians “may not be fully aware of the potential tax consequences and may experience adverse events, which leave them financially vulnerable”.
“If investors are not aware, they may omit this on their annual tax return and be contacted by the Australian Taxation Office later when it is discovered.”
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