Organization for Economic Cooperation and Development (OECD) published a crypto asset reporting system and amendments to the Common Tax Information Exchange Standard (CRS).
The recommendations developed by the structure are not mandatory, but serve as a guide for the regulators of the participating countries.
“The new international standards for tax transparency aim to further strengthen efforts to combat tax evasion in a digital and globalized world economy”, said OECD Secretary General Matthias Kormann.
Our new international tax transparency standards cover the updated Common Reporting Standard and the new reporting framework for crypto assets, further strengthening efforts to tackle tax evasion in a digitalised & globalized world economy.
➡️ https://t.co/GMcvZOQXCc pic.twitter.com/8Z595Vutrn
— Mathias Cormann (@MathiasCormann) June 8, 2023
In the document, the OECD acknowledged the impact of the crypto industry on the economy, including tax revenues in different countries.
CARF consists of three main components:
- rules for collecting relevant tax information, such as the volume of assets and organizations that carry out transactions with them;
- a new multilateral body to enforce them;
- an electronic XML format for the exchange of information between regulators.
The amendments to the CRS include a section on CBDCs, which may be subject to tax compliance requirements.
The document also adds the term Specified Electronic Money Product, which covers digital representations of fiat currency.
The OECD regulates the mechanism of how legal entities and individuals using cryptocurrencies should be controlled and taxed. CRS contains concepts like wallets, exchanges, DLT and digital asset-based financial derivatives.
Recall that in May 2023, the leaders of the G7 countries discussed tightening regulation of cryptocurrencies around the world.
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