ATO Strengthens Collaboration with Indonesia with New Crypto Tax Information Sharing Agreement
The agreement enables both nations to better detect taxable assets and fulfil tax obligations through improved data exchange on crypto assets.
This collaboration underscores both countries’ commitment to innovate and adapt their tax systems amidst rapid technological advancements.
Going forward, Australia and Indonesia will be able to better coordinate and collaborate around crypto tax compliance via improved data and information sharing.
Indonesia’s Directorate General of Taxes (DGT) and the ATO have signed a Memorandum of Understanding to establish a cryptocurrency information-sharing arrangement, aiming to enhance financial transparency and compliance.
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As per a statement, the agreement aims to strengthen the capabilities of both tax authorities in detecting assets that might be subject to taxation in either jurisdiction. By improving the exchange of data and knowledge related to crypto assets, the arrangement ensures that tax obligations are met more effectively.
Technological Change Drives Tax Authorities to Innovate and Collaborate
Mekar Satria Utama, the DGT’s Director for International Taxation, underscored the importance of this initiative:
The MoU reflects the necessity for tax authorities to innovate and collaborate in response to the rapid advancements in financial technologies globally.
Utama highlighted the critical role of equitable taxation in supporting economic growth and funding essential public services such as infrastructure, education, and healthcare.
Belinda Darling, Assistant Commissioner of the ATO, also commented on the deep-rooted partnership between the two tax bodies:
This arrangement builds on the strong historical ties between the DGT and ATO, which date back nearly two decades.
She elaborated on the focus of the partnership, which includes strengthening both nations’ tax systems and enhancing cooperation to tackle complex global challenges.
The collaboration has already seen significant advancements, including modernising taxpayer services and implementing VAT on digital goods, as part of broader international tax reforms.
The Australian Embassy in Indonesia said, “the latest arrangement underscores the shared commitment of Indonesia and Australia to adapt and innovate in the face of an evolving financial landscape, ensuring a fair and sustainable tax framework for the digital era.”
Industry Urges Government to Establish Clear Rules
The development comes at a time when the Australian crypto industry is requesting regulatory clarity. John O’Loghlen, APAC Managing Director for exchange Coinbase, has asked the government to collaborate with the industry, as the current status quo is holding back innovation.
He said he didn’t believe that the “penny’s dropped in Canberra or on the high street in terms of just how much great human capital there is in Australia.”
According to O’Loghlen Australia has some really talented people but the lack of clarity means funding remains an issue.
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Perhaps the agreement between Indonesia and Australia can be seen as a sign that governments are taking crypto more seriously. Maybe the penny is finally starting to drop and regulators are stepping up to provide more, and clearer guidelines for the growing sector.
The post ATO Strengthens Collaboration with Indonesia with New Crypto Tax Information Sharing Agreement appeared first on Crypto News Australia.
Filed under: Bitcoin - @ April 26, 2024 4:14 am