Founded in 2019 and based in Sydney, Crypto Tax Calculator is revolutionising the way individuals and businesses manage their cryptocurrency taxes. Its vision is to remove the pain of accurate and compliant tax calculation on crypto users, traders and companies. To do so, the company has built a SaaS tool that simplifies and streamlines the process of calculating and reporting tax for on-chain crypto transactions, making it more seamless and accessible.
Contrary to prevailing sentiment, we believe crypto is a durable and long-term tradable asset, and an adjacency to the liquid-tradable markets. Yet the crypto market is fragmented and nuanced. In its simplest terms, crypto can be transacted as both a tradable asset, a secured asset within a debt instrument and an asset-backed derivative. What’s more, the onus is on individuals to properly report and account for their capital gains and losses.
At present, cryptocurrency taxation is ambiguous and not intuitive to navigate, with profit or loss calculable in both crypto and fiat terms depending on the wide range of potential transactions a user can make. In fact, crypto-to-crypto transactions can be deemed a capital gain or loss event in many jurisdictions globally, which can create confusing domestic and cross-border tax situations that need to be calculated accurately to either register a capital gain or loss. And as the variety of transactions continually increases in line with innovation driven by crypto developers and product builders, this complexity will only compound.
Many crypto users have put off doing their taxes and are currently backfilling their lodgements for the last 4-5 years in line with increased regulatory scrutiny from the ATO - currently the most advanced crypto taxation regulator in the world. In the US, the situation is worse, with the IRS scrambling to scale its audit capacity with over 82,000 auditors hired in 2022 alone.
This regulatory push and the requirement for traders and accountants to reliably and accurately measure tax is driving the growth of Crypto Tax Calculator. And unlike its competitors, Crypto Tax Calculator addresses this need by providing a user-friendly platform that uses both on-chain and centralised exchange data to deliver highly accurate and reliable tax estimates for its customers.
Since its seed round, Crypto Tax Calculator has launched free and paid accountant portals with feature sets defining pricing. The portal (think Xero for crypto) allows accountants to add their clients to conduct real-time collaboration, import data, reconcile transactions and generate reports. This streamlines an accountant’s workflow so they don’t need to use multiple platforms or log-ins to manage their customers’ data.
Additional to the market dynamics, we believe in the vision, leadership and skill set of the Crypto Tax Calculator team, led by founders and brothers Shane and Tim Brunette. Their deep domain knowledge and expertise in blockchain and taxation make them the ideal duo to tackle this issue head-on and continue to lead the company's rapid growth.
