Binance Australia works with Koinly for tax reporting as ATO strengthens compliance

Jul 22, 2021

The branch of the leading Australian cryptocurrency exchange Binance has improved the ability for users to accurately report tax liabilities in the face of increased pressure from local tax authorities.

Binance has partnered with crypto tax startup Koinly to help users facing growing tax obligations. Binance’s Australian users will have access to Koinly’s tax reporting solution through the integration.

Koinly was founded in 2018 and supports over 600 exchanges and wallets, allowing users to sync their entire crypto transaction history with a central ATO-compliant platform.

The move comes as the Australian Taxation Office (ATO) is stepping up tax collection efforts for crypto profits. Last July, the ATO targeted 350,000 crypto asset investors and owners with a letter regarding undeclared crypto gains.

In May 2021, the ATO redoubled its efforts, prompting 100,000 Australian crypto users to report all profits on their tax returns – 300,000 more are expected to be asked to do so when filing their tax returns. It is estimated that over 600,000 taxpayers have invested in crypto assets in the past few years. The ATO uses data matching with exchanges to identify users who may have tax bills.

In an announcement shared with Cointelegraph, Koinly founder Robin Singh stated:

“The ATO collects bulk records from Australian crypto exchanges and compares them to the amount entered in previous tax returns. Failure to declare crypto profits can result in a penalty of 75% of unpaid taxes. “

Binance is also stepping up its educational efforts by hosting a year-end Masters course on July 22 in partnership with Koinly.

Connected: Two-fifths of Millennials in Australia believe crypto investments beat real estate

Sam Teoh of Binance Australia said that the crypto community has raised its tax compliance concerns, adding that “With about one in six Australians investing in crypto, both taxpayers and tax representatives are on a steep learning curve “.

Australians are not the only ones under the supervision of a tax officer. In late May, the U.S. Treasury Department recommended reporting crypto transactions over $ 10,000 to the Internal Revenue Service.

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