H&R Block Australia has partnered with CryptoTaxCalculator, a software data solution that performs complex crypto calculations, providing a new and niche service offering for Australian customers, while ensuring all crypto tax obligations are accurate, simple and straightforward.
Implementing software that identifies, tracks, and organises personal digital portfolio across hundreds of exchanges and blockchains, H&R Block can now generate secure crypto reports with the potential to eliminate any penalties, issues, or audits come tax time.
The platform is able to consolidate all digital transactions across multiple wallets, to calculate capital gains and losses of the previous year, and what tax on each trade may be.
“Cryptocurrency advice has quickly become a fast-growing area for H&R Block Australia, so when it came to sourcing a fit-for-purpose tool to support in this area and arm our professionals with even more knowledge, the CryptoTaxCalculator proved efficient in meeting all our needs. The individual investment reports now generated in house, prove we’re yet again one step ahead of the rest,” stated Brodie Dixon, managing director of H&R Block Australia.
Cryptocurrencies, including bitcoin and ethereum, have sat atop the retail investment trend for years; a boom that has simultaneously opened the door to substantial gains and losses for investors, according to H&R Block.
Investors are now grappling with the complexities of cryptocurrency and its tax obligations. Which currencies to trade, which exchanges to use, how to profit from buy/swap/sell transactions, and what records to keep are just some of the common queries.
Mr Dixon noted that by far the most important, and most often misunderstood, is understanding the tax implications of cryptocurrency gains and losses.
“Contrary to popular belief, the anonymity of the digital world does not translate to the licence to ignore tax obligations – the Australian Taxation Office (ATO) having warned that data from banks, financial instructions, and online exchanges can and will be tracked,” Mr Dixon added.
“Now, with many virtual currency transactions considered a taxable event, it’s the tax professional’s responsibility to calculate the gains and losses, track cost basis, and ensure tax returns are accurate, which can be especially complex if clients use multiple exchanges or purchased NFT’s.”
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.