KPMG Australia and cryptocurrency exchange Independent Reserve have developed a new tool that aims to help crypto traders better understand tax liabilities.
Developed by KPMG, the Crypto Tax Estimator is a digital tool that integrates the Independent Reserve’s user interface, enabling traders to estimate tax obligations in real-time, based on transactions carried out on the exchange.
The technology was borne out of a KPMG hackathon and was developed off-the-back of the company’s in-house expertise in tax technology, tax, risk, compliance and blockchain.
“It is estimated that hundreds of thousands of Australian companies and individuals are trading crypto assets. But in this complex and fast-emerging area, there are few sources of guidance that can help people easily understand the potential tax implications of trading, such as capital gains tax,” said KPMG Australia head of blockchain services Laszlo Peter.
“The possibility of being non-compliant is a major source of legal risk, and we want to provide an easy-to-use tool that may assist participants in the newly emerging token-based economy to understand their tax obligations.”
The tool is currently exclusively available to traders on the Independent Reserve and covers all cryptos traded on the exchange’s platform including Bitcoin, Bitcoin Cash, Ethereum, Litecoin and XRP.
“The Australian Tax Office (ATO) has made it clear that anyone involved in acquiring or disposing of crypto assets needs to be aware of the tax consequences, this tool provides our customers for the first time with a simple way to view this information,” said Independent Reserve CEO Adrian Przelozny.
“As the first exchange to be regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC), we are firmly committed to making the crypto market more attractive for local retail and institutional investors.
“This tax tool is a piece of critical infrastructure that will help our users understand and help manage their risk.”