Australia to Track Down Tax Evaders

Australian Tax Office (ATO) will seek out bitcoin investors with outstanding tax liabilities  
01 March 2018   376

According to a report, the Australian Tax Office (ATO) will seek out bitcoin investors with outstanding tax liabilities. Will Day, ATO deputy commissioner stated that transparency will be achieved due to forthcoming AML measures. It will grant the tax office increased probing powers next month.

The new policy will provide oversight of the crypto market and will include compulsory 100-point identification checks for crypto traders. At the moment, ATO does not consider bitcoin as a legal tender.

The new measures will extend the jurisdiction of the Australian Transaction and Reports Analysis Centre (AUSTRAC). The financial agency will be able to access cryptocurrency exchange records. Besides KYC and AML, the exchanges must report about suspicious transactions, as well as any cash transaction in excess of 10,000 Australian dollars.

According to a member of the National Tax Liaison Group and CPA Australia chief, Paul Drum, traders are curious whether bitcoin investments are exempt from capital gains tax personal asset rules.

Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less.

The Australian Tax Office

Paul Drum also stated that the effectiveness of the ­anonymity of Bitcoin and other cryptocurrencies is starting to fade. These coming changes mean that people shouldn't ­assume they can hide forever behind blockchain technology, nor should they ­assume there are no tax consequences.

Survey: Millionaires do not gain Enough Crypto Advice

A survey revealed today by Capgemini shows: only 34.6 percent of high net worth individuals have got cryptocurrency information from their wealth managers
19 June 2018   50

According to Reuters, the information is received from Capgemini’s annual survey, the World Wealth Report. The latest edition demonstreted that additionally to the aforementioned 29 percent, a further 26.9 percent are “on the fence” relatively to  cryptocurrency investment - meaning that well over half of HNWIs are aware of and/or interested in cryptocurrency like Bitcoin.

A Paris-based business consulting corporation, Capgemeni, determines HNWIs as people with at least $1 million accessible to invest, outside of asset holdings such as real estate, automobiles, and art. At the start of 2018, there were a counted 15.2 million such people in the world. This part of society controls more than $70 trillion, and Capgemini expects that figure to rise to $106 trillion by 2025.

Also it was found by the study that 71.1 percent of younger millionaires (age 40 and below) place “high importance” on getting information about cryptocurrency from their wealth management firms, as do 13 percent of those aged 60 and over. In the whole, only 34.6 percent of them claimed that they had learnt cryptocurrency information from their wealth managers. 

This probably points to a trend of wealth managers being a bit behind the times. It also unfolds that a market force which could go some way towards explaining the fact that at least 167 new cryptocurrency hedge funds were instituted last year. During the year of 2017, these funds saw massive growth in profit.