A warning for crypto-currency users who think they can bypass their tax obligations.

Inland Revenue is beginning to crack down on people not paying tax when they exchange or acquire crypto-currency for the purpose of selling it.

The IRD says just like with property, when you acquire cryptocurrency for the purpose of selling or exchanging it, the proceeds you make are taxable.

Deloitte tax partner Allan Bullot told Mike Hosking it would be naive to think you're going to get away with it.

"You see a lot of comments out there that people sort of assume, 'oh, the IRD will never find me'. I think that would be a very dangerous approach to take."

Bullot says the IRD's interest might lead to a drop in value and it might be time for crypto-currency users to cut their losses and get out of the game.

"I did hear someone say a number of years ago, in respect to property, that once the government starts trying to tax it, it is probably time to start selling it because its price is about to go down. Who knows what happens in that regard."

Bullot says crypto-currency users are walking the tight-rope if they think they can avoid paying tax.

LISTEN ABOVE AS ALLAN BULLOT SPEAKS WITH MIKE HOSKING