The ATO has announced that it will begin to collect data from cryptocurrency designated service providers shortly in a bid to identify taxpayers who have neglected to declare income made on cryptocurrency trades and therefore short paid their tax liability.

The ATO has estimated it will collect records relating to 500,000 to 1 million individuals which will enable their sophisticated data matching programs to identify impacted taxpayers.

Taxpayers are advised to comply with any ATO request for information to minimise any penalties and should expect to receive correspondence from the ATO in the mail if they have neglected to declare a gain. If you need assistance with your cryptocurrency transactions, please do not hesitate to contact us.