Taxman issues warning over a crypto trick Aussies are using to increase their tax returns
The tax office has warned Aussies not to use a crypto trick to increase their tax returns.
The ATO says 'asset wash sales' are a form of tax avoidance and they will be cracking down on them this year.
Wash sales describe the disposal of assets like crypto or shares before the end of the financial year before buying them back afterwards.
This could then lead to a higher tax return than the person is entitled to.
'A wash sale is different from normal buying and selling of assets because it is undertaken for the artificial purpose of generating a tax benefit for the current financial year,' the ATO explained.
'The taxpayer disposes of and reacquires the asset for the deliberate purpose of realising a capital gains loss and obtaining an unfair tax benefit.'
The ATO has warned Aussies to not use a crypo hack in an attempt to increase their tax returns
