The Australian Taxation Office (ATO) will pursue any legal action against anyone who falsifies data, intentionally tries to receive more money from a refund, or is unable to prove their claims.
In 2022, crypto-assets are one of the primary focuses for the ATO, as the statutory agency seeks to identify the mistakes people tend to make during the Tax Time.
In an announcement made by the ATO on Monday, four significant areas have been outlined for Tax Time 2022. The emphasis will be put on the rental property income and deductions, record-keeping, capital gains from crypto property, assets, and shares, as well as work-related expenses.
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The ATO also informed the public that if the stocks, property, or any crypto-asset, including NFTs, are sold this year, the increase or decrease in a capital’s asset value must be properly calculated and reported in the tax return.
Australian Taxation Office assistant commissioner Tim Loh continued and stated that there has been a substantial increase of people investing in cryptocurrency that should be familiar with the proper reporting process:
“Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember you can’t offset your crypto losses against your salary and wages.”
In addition, while a number of warnings were issued to the players in the crypto world, The Australian Taxation Office has once more emphasized that non-fungible tokens have also been part of different asset types that must be reviewed for proper tax reporting.
As Loh said that the taxing authority is already aware of people's investing activities, he also advised the traders to keep meticulous records in order to avoid receiving fines. The Assistant Commissioner said:
“While we receive and match a lot of information on rental income, foreign-sourced income, and capital gains events involving shares, crypto assets, or property, we don’t pre-fill all of that information for you.”
In March, Finance Minister of Singapore Lawrence Wong announced that traders in Singapore will have to pay appropriate taxes for profiting through trading or selling their NFTs.