Dion Seymour comments on the UK government’s call for voluntary disclosure of crypto
Crypto Tax & Accounting Technical Director, Dion Seymour, comments on the UK government’s call for crypto users to voluntarily disclose any unpaid capital gains or income taxes to avoid penalties, in CoinDesk, Nasdaq and ICOholder.
Dion discussed the current lack of awareness surrounding taxable events in crypto, noting that some investors may not have even read the guidance or realised that their NFT trades could constitute taxable events. He added that people may not always realise they are creating taxable events, such as purchasing an NFT using cryptocurrency like ether (ETH) or purchasing crypto using other crypto.
He challenged the government’s statement that if investors took ‘reasonable care’ when declaring their taxes, they may have to pay what is owed in unpaid taxes to the government for a maximum of three years preceding the current tax year, saying: “If you took reasonable care, you read the guidance and you misunderstood it, but then you asked a tax consultant about it. The taxation of crypto isn’t necessarily as straightforward or intuitive as some people may like.”
“If investors have actually used software or they’ve kept on top of it as they’ve gone through the process then it won’t necessarily be too bad, but if they haven’t, then it can actually be quite a difficult process for them to calculate everything.”
In addition, he commented on the UK’s adoption of CARF, stating: “This means a lot more information going to the Treasury than people previously would have expected.”
Photo by Stanislaw Zarychta on Unsplash.