SMSFs on ATO’s radar in cryptocurrency review

         

 

As part of its review of transaction information from cryptocurrency service providers, the ATO has said that it will be using this data to ensure that SMSF trustees or members who invest in cryptocurrency are complying with their obligations.

In an online update, the ATO stated that it has started collecting customer and transaction information from designated cryptocurrency service providers, where individuals, businesses and SMSFs buy, sell and transfer cryptocurrency. 

“We’ll collect this data and match it with taxpayer records to verify ‘purchase and sale’ information, to ensure people are meeting their tax obligations,” it said.

“We’ll then be able to identify SMSF trustees or members who may need help to understand their obligations, so we can provide further advice and guidance of the rules around the tax treatment of crypto assets.”

Following the data-matching exercise, the ATO said that it may contact taxpayers or SMSF members to verify the information it has collected. It said that it will provide individuals with at least 28 days to clarify any information.

“If you acquire or dispose of cryptocurrency, you must keep records of the transactions,” the Tax Office noted. 

The ATO also warned SMSFs that cryptocurrency can be a high-risk, volatile investment. 

“We’ve already seen incidences of SMSFs losing significant amounts of their retirement savings,” the ATO said. 

“We strongly recommend all trustees undertake their own investigation and appropriate due diligence before investing with any organisation investing super assets into cryptocurrency holdings.”

 

Miranda Brownlee
01 May 2019
smsfadviser.com

 

More Articles

Why crypto treads an uncertain path through tax minefield

The taxation of digital assets used for lending and borrowing would benefit from clear-sighted...

Read full article

Wheat Production by Country

Check out the countries that produce the most...

Read full article

Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’

Following years of mixed messaging, Labor has bowed to economic pressure and announced changes to its stage...

Read full article

Investment and economic outlook, January 2024

Region-by-region economic outlook and latest forecasts for investment returns. . What might shipping...

Read full article

Quarterly reporting regime means communication now paramount: expert

Communication between SMSF trustees, accountants and advisers is more crucial than ever with the quarterly...

Read full article

Four timeless principles for investing success

Investing success can mean different things to different people. Being clear on what success means for you is...

Read full article

Plan now to take advantage of 5-year carry forward rule: expert

This is the last year that the five-year catch-up contribution rules for concessional contributions can be...

Read full article

Super literacy low for cash-strapped

Financial literacy around superannuation is poor for many lower-income people, who still question why they...

Read full article

Sofie Korac is an Authorised Representative (No. 400164) of Prudentia Financial Planning Pty Ltd, AFSL 544118 and a member of the Association of Financial Advisers.

Financial Advice Sydney and the North Shore Office based in Gordon NSW

Financial Services Guide - Disclaimer & Privacy Policy

^