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The evolving market of crypto assets has raised a number of challenges for both individuals and institutions that trade and invest in crypto. Calculating the user’s capital gain tax (CGT) and other similar necessary practices are becoming complex and lengthy. As we reported last month, to help solving these sorts of issues, BitcoinTaxes and TurboTax Online have joined the hands that allow the users to transport their crypto CGT directly into TurboTax Online’s platform. However, there wasn’t a crypto-specific accounting and tax related service provider until now.
One of the Big Four accounting firms, Ernst & Young LLP that provides assurance, auditing, tax, advisory, transaction advisory services, and other legal services, has recently announced the launch of its Crypto-Asset Accounting and Tax (EY CAAT) tool. EY CAAT is an innovative software that facilitates users with built-in accounting and tax calculation tools for cryptocurrency transactions. Starting with the US version of the EY CAAT, the firm is aiming to expand its crypto and blockchain related services and capabilities across the globe.
On the EY CAAT launch, Marna Ricker, EY Americas Vice Chair of Tax Services stated:
“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.”
According to EY, the EY CAAT will prove to be an ideal tool for both institutional clients that have crypto assets in their portfolio and individual retailers who trade such assets on a smaller scale. EY LLP has also witnessed the significant surge in the number of users that invest and trade in digital currencies. EY CAAT can collect crypto transactions related information from all major crypto exchanges; later, this information can be used to create automated reports and documents that will be used to file IRS tax returns related to crypto assets.
Michael Meisner, EY Global Blockchain Tax leader said:
“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.”
With the growing market and use cases of crypto assets, the firm is expecting a big rise in the number of clients across various industries. Asset management companies are most likely to benefit greatly from EY CAAT tool. EY will also introduce a number of other services to help individuals and organizations associated with crypto assets. EY TaxChat is one of such services that allows users to connect with licensed and experienced EY professionals in order to help them with their tax returns.