New Zealand’s tax authorities have seemingly got the green light to collect crypto investors’ information from local crypto exchanges to see if they are paying their dues. New Zealand’s Inland Revenue Department (IRD) announced Monday that it had asked all firms to hand on customers’ personal details. It will be the first time the country’s IRD will gain access to crypto traders’ data, including trades’ names and addresses, and the value and type of their crypto assets.
There are no specific rules for the income tax or treatment of cryptocurrency.
Inland Revenue Department is requesting this information to enhance our understanding of the crypto asset environment in New Zealand so we can work out how best to help taxpayers meet their income tax obligations,” it said in a statement. Chief executive of Easy Crypto, Janine Grainger, told Radio New Zealand that she was disappointed by the request, but it has no legal grounds to refuse the IRD order. She went on to say that the requirement to hand over customers’ personal information is ‘heartbreaking.’ Currently, there are no specific rules for taxing cryptocurrency in the country.
The tax office sees crypto assets as property rather than as forms of money.
There are no definite rules for the income tax or treatment of cryptocurrency. But, the tax office sees cryptocurrencies as property rather than as forms of money. As a result, cryptocurrency investors may owe corporation tax, income tax, or capital gains tax depending on their activities and transaction type. Crypto regulations in most countries are still in a grey area as crypto scams continue to rise. New Zealand authorities with this new regulation are trying to combat crypto-related crimes and chasing those who use the virtual asset to hide wealth or avoid paying taxes.