IRD has announced a heightened focus on cryptocurrency transactions. With over $7.8 billion worth of crypto dealings identified, the IRD is using its sophisticated analytics tools to expose those who fail to declare income from crypto activity.
Are you one of the 227,000 New Zealanders identified by the IRD as investing or trading in cryptocurrency?
We have noticed that IRD has recently ramped up its activity. This is not limited to cryptocurrency taxes, but a general increase is back on compliance. Our opinion is that this is due to a change of government and IRD staff being removed from COVID-related IRD matters (i.e., wage subsidies, resurgence support, small business loans) and returning to their ordinary business.
Have you received this IRD letter?
IRD have records of your trading information and may ask you to explain yourself if no cryptocurrency income has been returned.
We can help you with this because we understand the complexities of cryptocurrency taxation. We stay up to date with the latest IRD guidelines and legislation so we can help you navigate the often-murky waters of crypto tax compliance.
We can provide:
Expert Tax Advice: We are Chartered Accountants who have a deep understanding of taxation legislation and the application of cryptocurrency to ensure you meet all your filing obligations.
Calculating Your Crypto Tax: We can help you accurately calculate your gains and income from crypto trading, ensuring you pay the right amount of tax for all cryptocurrency-related activities: trading, investing, contracting, payments in cryptocurrency, NFTs, De-Fi transactions, etc.
Dealing with IRD: we can manage all your filing obligations and IRD correspondence.
Record Keeping Made Easy: We can guide you on proper record-keeping practices for your crypto transactions, making tax time easier.
IRD is actively pursuing crypto tax compliance, and it’s crucial to be prepared. Don’t wait until it’s too late. Unpaid tax may be subject to the use of money interest and late payment penalties. It is best to meet your tax obligations as soon as possible to minimise these costs.
Contact Us
Contact Tim Doyle for a call or meeting to discuss any cryptocurrency tax or accounting questions. Our office is in Cambridge, Waikato, or we can arrange a video conference call.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
