Kiwi Start-up Taxoshi Cuts Through Cryptocurrency Tax Complexity In Time For 7 July Filing Date
After months of development, internal testing and discussions with Inland Revenue, Taxoshi has launched to make the complicated cryptocurrency tax process a breeze.
11 years ago, a visionary going by Satoshi Nakamoto launched Bitcoin, the first decentralised cryptocurrency, changing the world of payments forever.
Now, Taxoshi’s Founder and Technical Lead, Craig MacGregor, is following in Satoshi’s footsteps by launching https://taxoshi.com/, a solution that will streamline the increasingly complicated process of filing tax returns for anyone in the crypto ecosystem, from one-off traders to career miners.
The IRD has recently released a wealth of guidance making it clear that income from crypto is not immune to tax obligations.
The process for calculating tax for the sale of cryptocurrencies, which the IRD considers personal property held on revenue account, can be incredibly complicated.
“A lot of people are dabbling without knowing the consequences. If you only have one transaction of one currency establishing your cost base when you sell the gain/loss calculation is easy, but when you have multiple transactions between crypto and fiat currencies it can get very complex, very quickly. says Scott Mason, a crypto accountancy tax specialist and a Managing Partner of FINDEX, a large Australasian accountancy firm.
“Having a simple model that takes that into account has to be a god-send from the compliance perspective.”
MacGregor was trying to calculate his own crypto tax obligations and quickly found himself creating an entire software solution to tackle the complexity.
“I realised that I had to share this with the wider crypto-community and Taxoshi was born. IRD estimates 25,000 to 100,000 crypto users who have a tax obligation in New Zealand,” MacGregor says.
“Accountancy information is fragmented and only just coming into focus as IRD has released new guidance, but even this guidance is incredibly complicated.
“Taxoshi is the only platform that is New Zealand specific and we plan to work with more regulators to roll out globally in the future. Plus offering calculations of mining revenue and other advanced ways to earn money on blockchain and exchanges.
“As the understanding of the space grows, more people will be looking to get on the ladder. Taxoshi offers a streamlined and easy way for them to stay tax compliant.”
“Cryptocurrency is supported by innovative technology and Taxoshi is a useful service that we recommend to our clients for a comprehensive review of their tax situation”, says Janine Grainger, Co-Founder of Kiwi cryptocurrency retailer Easy Crypto. “It complements what Easy Crypto does in terms of making things simple, streamlined and easy for customers.”