The Organisation for Economic Co-operation and Development (OECD) published the crypto-asset reporting system and amendments to the Common Reporting Standard (CRS).
The framework’s recommendations are not binding, but provide guidance for regulators in member countries.
“New international standards of tax transparency are aimed at further strengthening efforts to combat tax evasion in a digital and globalised world economy,” — said OECD Secretary-General Mathias Cormann.
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 & globalised world economy.
➡️ https://t.co/GMcvZOQXCc pic.twitter.com/8Z595Vutrn
— Mathias Cormann (@MathiasCormann) June 8, 2023
The OECD document recognised 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 asset holdings and the entities carrying out transactions with them;
- a new multilateral body to ensure compliance with them;
- an electronic XML format for exchanging information between regulators.
Amendments to the CRS include a section on CBDC, to which tax compliance requirements may apply.
The document also adds the term ‘Specified Electronic Money Product’, which covers digital representations of fiat currency.
The OECD regulates how legal and natural persons using cryptocurrencies should be monitored and taxed. The CRS contains concepts such as wallets, exchanges, DLT and derivatives based on digital assets.
In May 2023, leaders of the G7 discussed tightening regulation of cryptocurrencies worldwide.