No Longer Invisible: Inland Revenue Targets 355,000 Crypto Users in New Tax Sweep

Inland Revenue has identified $36 billion in crypto transactions. New tracking tools and international data sharing now make crypto activity visible to NZ tax authorities.

By: AXL Media

Published: Apr 20, 2026, 9:33 AM EDT

Source: RNZ Pacific

The Breaking Development: The "First Batch" of IR Letters

Inland Revenue is using matched data to follow up on discrepancies between crypto activity and declared income.

The Scale: IR has tracked $36 billion in transactions. The first batch of letters targets individuals who usually have their tax assessed automatically but are now flagged for undisclosed crypto activity.

Property Status: For tax purposes, New Zealand treats crypto-assets as property. Any profit made from selling, trading, or exchanging them is considered taxable income.

Overseas Tracking: Through CARF, IR now receives automatic information on transfers made by NZ residents on overseas exchanges, leaving few places for "offshore" holdings to remain hidden.

Background and Strategic Context: The "Gateway" Trap