New Zealand’s Inland Revenue or Inland Revenue Department (IRD; Māori: Te Tari Taake) is the public service department charged with advising the government on tax policy, collecting and disbursing payments for social support programmes, and collecting tax.
Inland Revenue has recently updated its guidance on the tax treatment of cryptoassets in New Zealand. https://www.ird.govt.nz/cryptoassets
Spokesperson Tony Morris says “The guideline is part of IR’s focus on helping people to get things ‘right from the start’ and get their returns filed correctly. It’s also a good opportunity for people to review the tax positions they have taken previously and make voluntary disclosures if their income from cryptoassets hasn’t been returned correctly.”
As part of this initiative Inland Revenue (IR) has sent letters to several crypto businesses that have or are operating in New Zealand, including Dasset.
The letters request crypto companies in New Zealand to provide information on their NZ-based customers. This is not a surprise as similar requests have been made in UK, Australia, and the US in the past.
In IR’s words:
IR is requesting this information to enhance our understanding of the cryptoasset environment in New Zealand so we can work out how best to help taxpayers meet their income tax obligations.
The IR requested information of New Zealand customers that have transacted on Dasset before 31 March 2020. Dasset has not provided the IR its customer information yet. After seeking legal opinion we understand that we are required by law to provide the information to IR. We are particularly concerned about our customer data and respecting their privacy.
If you are a New Zealand tax resident you may be affected. You can log into your Dasset Account or contact us to request the information that we have.
You can download trade reports on Dasset on our trading page. Contact our customer support for transaction reports before February 2020.
If you owe undeclared tax to the IR, penalties and fines may apply. However, you can potentially get all the penalties waived by making a voluntary disclosure before the IR audit you. If you think you didn’t pay the right tax, you can make a voluntary disclosure to IR.
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