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  • Program objectives

    The objectives of the cryptocurrency data matching program are to:

    • Promote voluntary compliance and increase community confidence in the integrity of the tax and superannuation systems.
    • Identify and educate those individuals who may be failing to meet their registration and/or lodgment obligations and assist them to comply.
    • Gain insights from the data that may help to develop and implement treatment strategies to improve voluntary compliance; which may include educational or compliance activities as appropriate.
    • Obtain intelligence to increase the ATO’s understanding of the behaviours and compliance profiles of individuals and businesses that have bought, sold or accept payment via cryptocurrency
    • Ensure through compliance activities that individual and businesses that trade or accept cryptocurrency as payment comply with their lodgment, correct reporting and payment of tax (including capital gain and loss) and superannuation obligations.

    How the data will be used

    • We are seeking to obtain external data to cross-reference with our own data to identify relevant cases for administrative action, including compliance and educational strategies.

    The data acquired from DSPs will be used initially to identify and inform cryptocurrency consumers of their taxation obligations as part of an information and education campaign.

    Compliance action may be initiated based on the data acquired.

    Learn more about what we will do before amending a return.

    Previous programs

    No previous data matching activities have been conducted on the cryptocurrency market sector.

    Prior to publication of this data matching protocol, meetings have been held with potential data suppliers and samples of the available data have been obtained under notice. The data samples have been matched against ATO records and found to be of a standard acceptable for the aims of this data matching program.

    Data related matters

    Data matching and user agency

    We are the matching agency and in most cases the sole user of the data obtained in the course of this data matching program. The data matching program will be conducted on our secure systems in accordance with approved policies and procedures.

    In very limited and specific circumstances we may be permitted by law to disclose individual records to other government agencies.

    Learn more about our on-disclosure provisions.

    Data providers

    The source entities for this data matching program include cryptocurrency designated service providers through whom individuals and businesses are able to buy, sell or transfer cryptocurrency holdings.

    A principles based approach has been adopted to ensure that inclusion as a data provider is fair and transparent. Inclusion of a cryptocurrency designated service providers as a data provider in the program is based on the following principles:

    • The data owner or its subsidiary operates a business in Australia that is governed by Australian law.
    • The data owner provides cryptocurrency designated service for individuals.
    • The data owner provided these facilities in the year(s) in focus.
    • Where the client base of a data owner does not present an omitted income risk or the administrative or financial cost of collecting the data exceeds the benefit the data may provide, the data owner may be excluded from the program.

    The data providers for this program will be reviewed periodically against the eligibility criteria and, if required, will be included in the data matching program.

      Last modified: 29 Apr 2019QC 58683