OECD Presents New Transparency Framework for Crypto-Assets to G20

The Organization for Economic Co-operation and Development (OECD) – an intergovernmental organization with 38 countries, established to promote economic progress and world trade – has released its new tax reporting framework, the Crypto-Asset Reporting Framework (CARF), to G20 countries.

The release was based on a request by G20 countries for the intergovernmental organization to develop a framework that provides reporting and exchange of information between countries on crypto assets.

G2O finance ministers and central bank governors will meet on 12-13 October to discuss their views on the new regulatory framework, OECD disclosed the matter.

The CARF framework builds on certain enhancements to the Common Reporting Standard (CRS) that address tax transparency concerns in the digital economy.

The new transparency initiative, developed together with G20 countries, comes amid rapid adoption of the use of cryptocurrencies for a wide range of investment and financial uses.

Unlike traditional financial products, cryptocurrencies can be transferred and held without the intervention of traditional financial intermediaries like banks and regulators like central banks. The crypto market has also given rise to new intermediaries and service providers, like crypto exchanges and wallet providers, many of which currently remain unregulated.

Such developments mean that cryptocurrencies and related transactions are not comprehensively covered by the OECD/G20 Common Reporting Standard (CRS). This, therefore, increases the likelihood of their use for tax evasion while undermining the progress made in tax transparency through the adoption of the CRS.

The CARF framework, therefore, seeks to ensure transparency in crypto transactions by automatically exchanging such information with the local regulators about taxpayers on an annual basis. The CARF aims to achieve this objective by targeting entities offering crypto exchange transaction services on behalf of customers to be obliged to report under the CARF. Most crypto assets such as NFTs, DeFi, cold wallets, wallet addresses, and intermediaries like crypto exchanges and DeFi providers are now comprehensively covered by the reporting standard, unlike in the past.

The CARF framework consists of three building blocks: rules that can be transposed into domestic legislation, guidelines to help local administrators with the implementation of the exchange of information, and technical solutions to support such exchange of information.

The CARF proposal comes at an uncertain time for the crypto market, as recent fluctuations in the values of Bitcoin and other assets have affected several crypto businesses and left them with budget constraints.

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OECD Calls for Public Comments on Impacts of Crypto Tax Reporting

The Organisation for Economic Cooperation and Development (OECD) has called for additional requirements to the current model for which cryptocurrency-focused transactions are reported to the appropriate tax authorities.


In a consultation paper published on Tuesday, the OECD argued that tax authorities around the world do not have the right visibility to monitor transactions involved in the crypto space going by the currently approved standards.

The subject of crypto taxation comes off as one of the most polarizing in the nascent digital assets ecosystem. While many countries have failed to legalize the engagement in cryptocurrencies, it has not deterred tax authorities to demand investors and traders in the space to pay what is due when the tax season comes calling.

Per the proposal demanding additional reporting standards on crypto transactions, the OECD is proposing a maximum term of 12 months to prepare licensed trading platforms to develop the capacity to comply with the new rules when or if eventually implemented. 

The proposal is seeking the public to help comment on the scope of the requirements, on what digital assets, including Non-Fungible Tokens (NFTs) it is set to impart, and other key areas of consideration.

“Unlike traditional financial products, crypto-assets can be transferred and held without the intervention of traditional financial intermediaries and without any central administrator having full visibility on either the transactions carried out or crypto-asset holdings,” said a summary of the report. “Therefore, crypto-assets could be exploited to undermine existing international tax transparency initiatives.”

Many tax bodies, including the United States Internal Revenue Service (IRS), are well on their toes with respect to crypto tax reporting. As part of its measures to monitor crypto transactions aright, the regulator has in times past hired the services of private crypto tax contractors to help track down potential tax evaders.

The OECD proposal is open for comments up until April 29 with the organization slated to report on the amended reporting rules during the G20 Bali summit in October.

Image source: Blockchain.News


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Unified Crypto Tax Reporting Standard Coming in 2021, Says OECD Director

Australian Tax Office to scale up Surveillance on Cryptocurrency Traders

Australian Tax Office to scale up Surveillance on Cryptocurrency TradersCrypto tax may soon see its own version of the Common Reporting Standard (CRS) as the Organisation for Economic Co-operation and Development (OECD) is reportedly working on a unified approach to handling virtual currency taxation. The news comes as several G20 countries are mandating stricter compliance to national tax laws for traders, exchanges, and other

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OECD Will Launch International Crypto Tax Standards in 2021 says Tax Director

The director of the OECD’s Centre for Tax Policy and Administration has revealed that the Organization for Economic Co-operation and Development (OECD) will release international tax reporting standard for crypto assets in 2021.

OECD, Tax, Crypto

Pascal Saint-Amans, the director of the OECD’s tax center has reported that the OECD, a group of 37 nations working towards global economic co-operation, will introduce an international reporting standard for cryptocurrency tax declaration by the end of next year.

According to an article in Law360 on Nov 26, the OECD tax director said that the coming crypto tax standard would be the equivalent of a ‘common reporting standard (CRS)’ and is being developed by the OECD to tackle tax evasion and fraud.

Amans said that the likely development of the common reporting standard for crypto tax is due to the member countries’ desire to find consensus on crypto regulation. He said, “The timeline to deliver is probably ’21, sometime in ’21, because there is an appetite by all countries now.”

The news of the potential OECD crypto tax CRS comes shortly after the European Commission (EC) began its overhaul of its tax evasion laws regarding cryptocurrency and digital assets. The EC published its proposal on Nov 23 and the commission is awaiting public feedback with a Dec. 21 deadline—the new crypto tax laws expected by the third quarter of 2021.

Amans believes the OECD will be able to establish its tax standard before Europe and the OECD director sees an opportunity for the EU to align their own new legislation with the OECD’s 37 member nations.

While two major regulatory bodies working on regulations in silos could potentially result in contrasting policy positions between the OECD and the EC—a point of concern in regulation that was highlighted in the European Parliament’s briefing entitled, Digital Taxation: State of Play and Way Forward.

The director of the OECD’s Centre for Tax Policy and Administration, Amans has asserted that this contradiction in policy is unlikely and that the OECD’s own proposal would likely complement the EU crypto regulations. An EC spokesperson asserted in the report that they are working with the OECD to avoid any inconsistencies in policy as much as possible but the “specific situation of the EU and its member states needs to be taken into account” throughout the process.

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