Over 40 countries have agreed to implement the crypto reporting framework developed by the Organisation for Economic Co-operation and Development (OECD) as mandated by the G20.
The widespread, consistent, and timely implementation of this crypto reporting framework “will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes,” they said.
48 Jurisdictions Implementing OECD’s Crypto Reporting Framework
Forty-eight jurisdictions, including more than 40 countries, issued a joint statement on Friday regarding the implementation of the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD), as mandated by the G20.
The statement was jointly issued by Armenia, Australia, Austria, Barbados, Belgium, Belize, Brazil, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Norway, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, the U.K., and the U.S. The Crown Dependencies of Guernsey, Jersey, and the Isle of Man, as well as the U.K.’s Overseas Territories of the Cayman Islands and Gibraltar, also issued the statement.
“We welcome the new international standard on automatic exchange of information between tax authorities developed by the OECD — the Crypto-Asset Reporting Framework (CARF),” the statement begins, adding: The widespread, consistent and timely implementation of the CARF will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes.
The implementation of the CARF aims to “keep pace with the rapid development and growth of the crypto-asset market and to ensure that recent gains in global tax transparency will not be gradually eroded,” the statement notes. The CARF was developed pursuant to a mandate from the G20. It provides a standardized way to report tax information on crypto transactions so that this information can be automatically exchanged with taxpayers’ jurisdictions of residence on an annual basis.
All the above jurisdictions stated that they “intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027, subject to national legislative procedures as applicable.” In conclusion, the statement notes: We invite other jurisdictions to join us with a view to enhancing the global system of automatic information exchange which leaves no hiding places for tax evasion.
Source : Bitcoin.com / November 15, 2023