New Zealand’s tax regulator, the Inland Revenue Department (IRD), requested all crypto firms to provide personal details of their customers.
IRD is requesting this information to enhance our understanding of the crypto asset environment in New Zealand, so we can work out how best to help taxpayers meet their income tax obligations.IRD said in a statement
Reaction of Crypto Users
Chief Executive of Easy Crypto, Janine Grainger, said the request to provide customer’s personal information was “heartbreaking” but not surprising, Radio New Zealand reported.
I guess [IRD] is just widening its net of the tax base and crypto assets are something that is definitely growing in popularity and we’re seeing a huge increase in New Zealanders getting involved.Janine Grainger
Despite the crypto industry’s focus on privacy, Grainger said Easy Crypto would comply with IRD’s request. He noted that his company did not find any legal grounds to refuse providing such information.
The point of privacy isn’t to aid people who have something to hide. It’s to ensure we have a fair, open, and free society.Janine Grainger
IRD Issues New Guidance
Earlier this month, IRD issued new guidance on how crypto assets would be taxed.
The IRD’s new guidance aims to clarify how ordinary tax rules apply to crypto assets, so people can understand their tax obligations.
This updated guidance allows people to work out what tax they need to pay when they sell, trade, swap, lend, or mine crypto asset transactions. They can find out what records to keep and work out what they need to put in their tax return.IRD spokesperson Tony Morris
The IRD is not the only government body dialing in on digital asset taxation.
Likewise; the US Internal Revenue Service has also upped its overwatch on the crypto industry.
In 2018, Coinbase also had to give the IRS data on thousands of its customers as a result of an investigation by the agency, according to Cointelegraph.