Professional Services firm Ernst & Young (EY) have announced the launch of a new tool designed to help people with their cryptocurrency tax filing. This comes as we approach international tax deadlines which will mean that investors worldwide will need to start accounting for their Bitcoin and cryptocurrency earnings if they live in an area that requires investors to pay tax on their cryptocurrency.
The tool, called the EY Crypto-Asset Accounting and Tax Tool (CAAT) has been designed to allow for a seamless accounting experience that makes it easy for investors to calculate how much tax they owe for their cryptocurrency transactions. CAAT has been designed to help both retail, individual investors and the bigger institutional investors.
Marna Ricker, the Vice Chair of Tax Services for EY Americas has commented on the launch of CAAT, stating that:
“EY CAAT exemplifies our commitment to exceptional client service in a changing landscape. We are excited to offer an innovative technology specifically to address our clients’ needs in the crypto-asset space. I appreciate the efforts of the EY Foundry and professionals across our practice who have made this breakthrough.”
Michael Meisler, a Partner and EY Global Blockchain Tax Leader has also commented:
“The initial validation we have received from the market has been phenomenal, but it only represents the beginning. EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients.”
Cryptocurrency is still within choppy waters when it comes to taxation, with many believing crypto should not be taxed at all, though the general consensus is that since cryptocurrency is a currency based investment, it should be liable for tax. Not to mention the sheer volume and profits that can be made within crypto. If they can tax it, they will, sadly Bitcoin is no exception to this. Because of this, EY have designed this tool to open up the space to new, prospective investors who may have worried about tax regulations beforehand.
Chirag Patel, EY Foundry Leader has also offered comment:
“The world of crypto-assets and cryptocurrency investing continues to evolve. It is the Foundry’s mission to stay ahead of the market as best that we can and to launch new digital solutions and digital businesses to help our clients do the same. EY CAAT is a timely addition to our expanding portfolio of successful new digital businesses at the Foundry.”
EY CAAT is great for crypto investors old and new and promises some great things for cryptocurrency adoption and of course, for the intervention of institutional investment in the future.