Crypto tax calculation platform Koinly reportedly completed the Terra wallet integration for simplified tax calculation for LUNA Holders, as the tax report deadlines in Canada are around the corner. 

Specifically, Tony Dhanjal, head of tax at Koinly, reportedly revealed that LUNA support has been on the request list by numerous Koinly users, and the integration will offer users a “way to accurately track and record their transactions to meet their tax obligations.”

Crypto tax calculation will not be hard should a user’s crypto dealings be simple. Nonetheless, “the average crypto investor is connected to three to five exchanges, wallets or blockchains”, per Dhanjal. 

Due to this reason, finalizing the tax affairs using these sources is very difficult and is subjected to a high level of risk of errors, which led to Dhanjal’s suggestion of employing a simple crypto tax calculation tool.

Besides this point, Dhanjal reportedly highlighted the importance of paying crypto taxes. While the process is different country-to-country, most of them make it mandatory for the crypto tax to be reported. 

The tax professional reportedly encourages investors to pay not only their crypto taxes but also any other tax that they are liable for as an individual or a business. 

“Ignorance is not a valid excuse, and there could be a fine line between this and tax evasion, which is illegal […] The penalties for tax evasion can be severe, not to mention the reputational and other damage to you or your business, this could cause.”

EY crypto tax executive Thomas Shea additionally shared that individuals that purchase crypto using fiat or any unrealized gains are not a taxable event, with the same principle applying to nonfungible tokens (NFTs).

Meanwhile, crypto initiatives headquartered in India recently disclosed plans to transition to more pro-crypto jurisdictions due to the decision from the India tax agency to impose a 30% tax on crypto, regarding holding and transferring digital assets.