BRISBANE, Australia, July 21, 2021 /PRNewswire/ -- As the ATO's fixation with crypto tax heats up, one of Australia's largest cryptocurrency exchanges is pointing their users in the right direction.
Koinly , a cryptocurrency tax startup, has partnered with Binance Australia to help educate and assist Binance users with their cryptocurrency tax obligations.Binance users have also been offered access to Koinly's ATO-compliant tax reporting solution through an integration.
Last year, some 350,000 Australian crypto investors were treated to a letter from the ATO. Recipients were given 28 days to disclose their crypto trades.
This year, the target has grown with the ATO issuing a reminder to approximately 100,000 taxpayers while a further 300,000 people are expected to be prompted while lodging their 2021 tax return online.
"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.
In light of the crackdown, Binance Australia is putting consumer education in the spotlight. On Thursday 22 July the exchange will host the 2nd in a series of EOFY crypto tax masterclasses. The 2021 edition is presented in collaboration with Koinly, where the tax reporting app will focus on unpacking the ATOs stance on crypto, and empowering Binance users to report their crypto position accurately in their 2021 returns.
Koinly helps Australian investors prepare their crypto tax reports in a simple yet compliant manner. The app supports over 600 exchanges and wallets, which means investors can sync their full crypto trading history with one central source of truth. Koinly takes this data and calculates reportable gains, losses and income, within a matter of minutes.
"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.
Launched in July 2020, Binance Australia is a regulated digital asset exchange registered with AUSTRAC, providing Australian users with a fast, secure, and reliable way to buy and trade digital currencies.
Koinly was founded in 2018 and is the leading cryptocurrency tax solution in Australia. It is used by thousands of cryptocurrency traders and counts many of the top Australian accountancy firms among its user base.
Contact:Robin Singh firstname.lastname@example.org