Tax advisory and crypto accounting firm Kova Tax received a grant worth $277,000 AUD from the government in order to build out its Syla platform.
Crypto tax software sees receives windfall
Crypto taxes are a topic that is not often talked about, and if it is, then usually in a way that investors do not want to hear (like tax obligations). While not all investors are aware that they have to pay taxes, even fewer will know that software exists to help them with their crypto tax accounting. One such example is Syla, a web-based software by crypto accounting and tax advisory firm Kova Tax.
This Brisbane-based company now received a $277,000 AUD grant from the Australian government. The grant was awarded as part of the second round of the “Boosting Female Founder’s Initiative,” which targets female entrepreneurs looking for funding to grow their startups. In total, 38 fledgling companies received a grant (out of a pool of 2,500).
Minister for Women’s Economic Security Hon. Jane Hume and Hon. Angus Taylor MP noted that the initiative’s goal was to promote female-led startups, which “demonstrate the incredible Aussie ingenuity” the government wants to foster around the country.
Syla functions similar to other crypto tax trackers like CoinTracker and uses cloud-based tax reporting and portfolio management software, which utilizes an AI-driven engine to help investors automate their crypto tax reporting.
Aussie government changes its tune on crypto
This award is insofar remarkable, as it demonstrates a shift in perspective on part of the Australian government when it comes to cryptocurrencies. After the Senate Committee report in late 2021, which outlined clear recommendations the government should follow to boost Australia’s standing in the crypto industry, it is the first noteworthy sign that politicians may actually be following the advice received. The grant is the first time a crypto tax advisory received money from the public sector, and Maryna Kovalenko, director of Kova Tax, underscored how impactful the company’s work is:
“It is hard for accountants to process all crypto transactions and achieve correct tax outcomes for their clients due to the quantity and complexity of the transactions and also lack of guidance from the Australian Tax Office. “Investors want to know they are paying the lowest tax possible and ensuring that they are not at risk of an audit.”
The estimated 4.2 million crypto investors in Australia will agree with her. Crypto tax reporting is not often talked about, and investors may simply not know how to pay taxes on crypto even though they genuinely want to. According to Kovalenko, Syla is the tool that remedies this problem since it is able to produce compliant tax reports with “audit-proof accuracy.” Its Beta version is targeted for April 2022 and will no doubt be even more eagerly anticipated by investors after this grant.
Luckily for Australian crypto investors, the days of guessing how and when to pay taxes on their crypto investments may soon be numbered.