According to Koinly’s Tony Dhanjal, the integration allows LUNA users to precisely track and record their transactions in order to meet their tax responsibilities. As the Canadian tax report deadline approaches, cryptocurrency tax calculation portal Koinly has added Terra (LUNA) wallet functionality to make tax calculation easy for LUNA holders.
According to Tony Dhanjal, Koinly’s head of tax, many Koinly customers have sought LUNA support, and with the integration, LUNA users will have a “means to precisely track and record their transactions to meet their tax requirements.”
Calculating crypto tax is simple if a user’s crypto affairs are straightforward. However, according to Dhanjal, “the average crypto investor is connected to 3 to 5 exchanges, wallets, or blockchains.” As a result, calculating taxes from these sources is complicated, and the potential for error is significant. This is why Dhanjal advises using a basic crypto tax calculating tool.
Apart from that, Dhanjal underlines the significance of paying cryptocurrency taxes. While the procedure differs by country, most governments require cryptocurrency tax to be reported. The tax expert advises consumers to pay not only their crypto taxes but also any other taxes that they are obligated to pay as an individual or a business. Dhanjal elaborated, saying:
“Ignorance is not an acceptable justification, and there may be a delicate line between this and unlawful tax avoidance […] The consequences for tax evasion can be significant, not to mention the reputational and other harm this could bring you or your organization.”
In an interview, EY crypto tax expert Thomas Shea reminded viewers that purchasing cryptocurrency with fiat or any unrealized gains is not a taxable event. Shea also stated that nonfungible tokens are the same.
Meanwhile, crypto projects operating in India recently announced plans to relocate to more crypto-friendly jurisdictions due to India’s crypto tax law, which imposes a 30% crypto tax on holding and transferring digital assets.