To Track Tax Obligations, Three Australian Crypto Exchanges Partnered with Crypto Tax Firm
July 29, 2020 1:31 pm
On July 29, Koinly, a Crypto taxation software provider has announced a partnership with three Australian digital asset exchanges Coinjar, Cointree and Swyftx to simplify their clients’ tax reporting.
Coinjar, Cointree and Swyftx proclaimed support for Koinly allowing the exchanges’ customers to automatically feed trading data to Koinly via CSV or API, and access detailed capital gains reports.
“Even though there is a lot of guidance around cryptocurrency taxes, it is simply too difficult to calculate taxes by hand especially if you traded on multiple exchanges”-Robin Singh, Asserted Koinly founder.
The move follows the Australian Taxation Office (ATO) sending letters to 350,000 Australians believed to be trading crypto-assets to remind them of their tax obligations in March. Per the estimation of ATO, one million Australians are engaged in crypto trading activities equating to 4% of the country’s entire population.
Robin Singh stated that after the ATO sent the letters in March, Koinly entered into discussions with several Australian exchanges. He said:
“We have seen a surge of Australian users on our platform in recent months and a lot of them trade on these exchanges. Likewise, the exchanges are also getting a lot of users with questions about taxes. Our partnerships enable us to work together to solve a common regulatory hurdle and make it easier for the regular crypto investor to continue trading without getting caught up in a tax hell.“
Singh also recorded that many traders still do not realize that crypto-to-crypto trades incur tax obligations.
The Data Matching Program Protocol
The ATO also launched an initiative last year, requiring local cryptocurrency exchanges to share data with government agencies on an ongoing basis.
The information is fed into the ATO’s data-matching program protocol, which is used “to identify the buyers and sellers of crypto assets,” and individuals who may not be meeting their reporting requirements. The ATO prophesied that the form of fees and fines from non-compliant traders of the $1 billion campaign, would make a $3 billion return.