Binance Australia has partnered with cryptocurrency tax startup Koinly to assist users struggling with ever-increasing tax obligations. Binance users in Australia have been offered access to Koinly’s tax reporting solution through the integration.
The move comes as the Australian Tax Office (ATO) increases its effort to collect taxes on cryptocurrency gains. The Australian Tax Authority (ATO) sent a letter to 350,000 Australian crypto investors last year to remind them that disposing of cryptocurrency could result in capital gains tax obligations. The ATO sent another reminder this year, explaining that it would be collecting data from crypto exchanges to determine tax liability.
“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” explains Robin Singh of Koinly.
“While Australia is lucky to have clear guidance on crypto tax rules, the requirement on taxpayers to keep audit-worthy reporting, unfortunately, exposes investors to penalties. Getting your taxes right is incredibly important, which is why we’re proud to offer reporting that is robust enough for tax agents and audits” he added.
“With approximately 1 in 6 Australians investing in crypto, taxpayers and tax agents alike are on a steep learning curve. Our community has voiced their concern around tax compliance and we’re committed to supporting them with the resources they need,” said Sam Teoh, of Binance Australia.
“In 2021 the regulatory framework surrounding crypto demands a responsible and transparent approach by all players. We’re giving our users the best possible opportunity to stay on the right side of the ATO by officially partnering with Koinly this tax season”, he added.