Introducing Kova Tax: accounting and advisory services for cryptocurrency investors

Maryna Kovalenko
April 29, 2019

Introducing Kova Tax: accounting and advisory services for cryptocurrency investors

  • Are you a cryptocurrency investor or trader looking for an intelligent tax strategy?
  • Do you need an experienced financial advisor to assist with your crypto Self-Managed Super Fund (SMSF)?
  • Are you seeking a compliance specialist in tech-focused accounting?

We’re your answer!

Kova Tax is your cryptocurrency smart compliance partner who can work with you across all areas of cryptocurrency investment to help you make more informed decisions, improve your tax-strategy and help you achieve the best outcome.

My name is Maryna, and together with my business partner, Nick, we founded Kova Tax as Australia’s modern, tech-focused accounting firm. We specialise in comprehensive compliance and accounting services for FinTech businesses and cryptocurrency investors and traders.

Here’s more information about how you can benefit from our experience and expertise in both technology and accounting to achieve the best short and long-term outcomes for you.

Want free advice to answer your compliance questions?

Kova Tax has partnered with Digital Surge to offer you complimentary tax advice for all users on their platform. Read more below to find out how.

How does Kova Tax work to help you?

Kova Tax is an accounting practice and registered tax agency that specialises in accounting and tax services for business, individuals, and super funds, with a particular focus on cryptocurrency tax-treatment, as well as other alternative investments such as forex, derivatives and hybrid securities.

Due to our niche development of specific software, combined with our relevant experience in technology and finance, we are able to handle the precise needs of clients like yourself who are too advanced for the ‘typical’ operating models that traditional accountants are used to.

Unfortunately, these traditional providers tend to be more conservative when it comes to cryptocurrency, with little to no digital trading experience, which is why some of our clients have shared their frustration of having to ‘teach and explain things over and over again’ about their investments.

This is counter-productive, as it means you spend more time trying to explain the basics to them, rather than them actually helping you.

At Kova Tax, cryptocurrency is our priority

We understand the tax and accounting aspects of cryptocurrency in great detail and continue to monitor trends and keep up-to-date. This ensures that our services can help you get the most out of your individual circumstances.

At Kova Tax:

  • we actually trade and transact in digital currencies ourselves,
  • we are registered on countless exchange platforms to truly understand how they perform record keeping for our clients, and
  • we regularly attend community events on crypto and blockchain technologies and continue to expand our knowledge daily.

This way, you can rest assured knowing that you are coming to the right professionals who have a passion for the crypto space and an active working knowledge.

What are the financial benefits we offer you?

The value for our crypto clients is we get better results in multiple ways.

This comes from a combination of having the required tax knowledge and expertise, along with the use of our internal software which allows us to successfully map out the right tax strategy and generate the optimal result.

In tax, there can be more than one correct way to calculate your income. Our custom-built Kova Tax software works out all of the combinations which apply to you, and then we select the one that gives you the best outcome.

These results are also guided, reviewed and approved by an experienced accounting professional with full consideration of your circumstances.

How do we help you achieve your financial goals?

The tax landscape in Australia can be incredibly complicated, especially when it comes to trading crypto assets.

A common misconception is that cryptocurrency is only ever treated as a capital asset and subject to Capital Gains Tax (CGT). However, in a substantial number of cases, this is not true.

If you are actively trading, or even trading in a professional manner, you may be considered in a profit-making venture or carrying on a business, in which case you will be taxed under a completely different regime. Even more confusing is that, on some platforms which allow you to trade with leverage, you are not actually trading the asset directly. On exchanges offering leverage, you are likely trading a type of derivative contract.

When you are trading derivative contracts such as Contract For Differences (CFDs), Futures or Options, you are actually trading a financial instrument that, for the purposes of tax, could be treated as a profit-making venture, carrying on a business, and in some ‘exceptional’ cases, can even be treated as gambling.

This is a tough situation for your tax calculator or even your ‘everyday’ accountant to correctly deal with, because the tax treatment is entirely specific to you and your circumstance. It requires precise interpretation of tax legislation and relevant precedent set in case law.

At Kova Tax, we specialise in managing all of this, which ensures that you’re in safe hands across all accounting, compliance and taxation requirements when it comes to digital investment.

Why Kova Tax is your ideal tax advisor

We established Kova Tax to be a modern accounting firm which integrates technology and software at the core of our services, to help people who have a specific interest in digital currency.

One of the biggest complaints people have with traditional accounting services is that they just don’t know what the cost is going to be, and even making a phone call to an accountant can result in an unexpected bill ending up in your inbox.

So, I established a simple rule for my business – advisory is free for all Kova Tax clients.

We do not charge you just for asking questions; in-fact we encourage it. We embrace that tax awareness is important and there should be no cost for your right to know how your tax will be treated. When our clients engage our services, we are always upfront about the costs involved and are able to give a fixed price quote in almost all cases.

How we utilise technology solutions

In the crypto space, many of our clients are prolific traders. We have handled situations with well into the 100,000s of trades with activity spread across a dozen platforms. This is a daunting task even for the most skilled accountant, and in practice, simply not possible for most.

My technology partner, Nick, has an amazing engineering background and his focus is on technical solutions, where he builds tax automation tools specifically for meeting the needs of our crypto clients. Our ability to flexibly build software in-house for consolidating, interpreting and analysing such large quantities of trade data is the critical key in our ability to handle even the most challenging of cases.

Why is Kova Tax here to help you?

At Kova Tax, we are passionate about three things:

  1. applying the best tax strategies to retain your wealth,
  2. unlocking future growth and security through your SMSF,
  3. uncovering the possibilities that Bitcoin-related technology can offer society.

As professional accountants and technology experts, we are most interested in this new evolution of what we consider the ‘next generation of money’ to be. Cryptocurrency and blockchain are powerful concepts to consider, in that these solutions have the possibility to completely overhaul the money infrastructure of our current financial system.

The extent of positive benefits that this technology can provide for Australia and on a global scale is enormous. We are excited to help bring Australia into the new economy, one individual, and one business at a time.

Find out more about your crypto-accountant, Maryna

I have worked for over 15 years in Accounting, Audit and Tax.

I worked in Ukraine for a number of years at Baker Tilly International and 3M Ukraine (which is a Fortune 500 corporation). Since moving to Australia seven years ago, I have been specialising in tax solutions and compliance; most recently at BDO Australia, where I help large business understand and excel in Australia’s tax landscape.

A few years ago, I entered into the crypto space and since then, my passion was ignited and has grown rapidly. I am an investor and trader myself, and when it was time to lodge my own tax return, I came to realise the many difficulties that Australians were facing and the lack of information available, even to qualified accountants.

Since then, I have been filling the gaps in this niche by serving the crypto community and have helped many individuals and business with their tax and accounting solutions.

Let’s discuss how we can help you be a smart cryptocurrency investor

At Kova Tax, we’re here to help you with everything to do with your digital asset investments.

We welcome the opportunity to answer all of your questions, advise you on your tax strategy, ensure you are compliant, and much more.

If you’re pursuing cryptocurrency as an investment option, it’s very important to ask an experienced professional about how to classify your activity, and how to perform the correct tax treatment. So let us help you.

We have partnered with Digital Surge to offer complimentary tax advice for all users on their platform. So, your tax questions can be answered in full and free of charge, by a registered tax professional.

Please send your questions through at any time and we will be happy to support you.

Email Kova Tax today: ask@kovatax.com.au or visit our website, www.kovatax.com.au.

We’re looking forward to hearing from you soon.

Happy trading,

Maryna Kovalenko.

Maryna Kovalenko

Maryna Kovalenko is the founder of Kova Tax. She has worked for over 15 years in Accounting, Audit and Tax.