Crypto tax calculation platform Koinly has added support for the Terra (LUNA) wallet to make tax calculations easier for LUNA holders as the Canadian tax filing deadline approaches.
Tony Dhanjal, tax manager at Koinly, said LUNA support has been requested by many Koinly users, and with the integration, LUNA users will have a “way to accurately track and record their transactions. to meet their tax obligations.
Calculating crypto tax is easy if a user’s crypto business is simple. However, Dhanjal told Cointelegraph that “the average crypto investor is connected to three to five exchanges, wallets or blockchains.” As a result, calculating taxes from these sources is very difficult and the risk of error is high. This is why Dhanjal recommends using a simple crypto tax calculator tool.
Other than that, Dhanjal stresses the importance of paying crypto taxes. Although the process varies, most countries require the crypto tax to be declared. The tax expert encourages people to pay not only their crypto taxes, but any other taxes they are liable for as an individual or business. Dhanjal explained that:
“Ignorance is not a valid excuse, and there could be a fine line between that and tax evasion, which is illegal. […] Penalties for tax evasion can be severe, not to mention the reputational and other damage it could cause to you or your business. »
Related: Russia To Include Crypto In Its Tax Code: Here’s What The Rules Could Look Like
In an interview with Cointelegraph, Thomas Shea, Head of Crypto Tax at EY, reminded people that buying crypto with fiat or any unrealized gain is not a taxable event. Shea also said the same goes for non-fungible tokens.
Meanwhile, India-based crypto projects have recently shared plans to move to more crypto-friendly jurisdictions, as India’s Crypto Tax Act imposes a 30% crypto tax on the holding and transfer of crypto. digital assets.