48 Nations Unite for Crypto Tax Transparency
48 nations, including economic powerhouses like the United States, the United Kingdom, and Australia, has committed to adopting the Crypto-Asset Reporting Framework (CARF) by 2027.
This joint decision, announced on Friday, Nov. 10, signifies a collective push for improved tax transparency in the rapidly evolving crypto-asset space.
The Inland Revenue Authority of Singapore (IRAS) revealed that CARF, unveiled internationally in June 2023, is based on OECD standards following a G20 mandate in April 2021. CARF mandates the disclosure of cryptocurrency transactions, regardless of intermediaries or service providers.
CARF facilitates automatic exchange of tax-relevant information for crypto assets, addressing the growth of the crypto-asset market and supporting global tax transparency. The framework also aids in tracking diverse cryptocurrency transactions on a global scale.
In a joint declaration, the 48 jurisdictions emphasize the crucial need for widespread, uniform, and prompt CARF implementation. This commitment aims to strengthen tax compliance and combat evasion. The jurisdictions state,
“The widespread, consistent, and timely implementation of CARF will significantly enhance our capacity to ensure tax compliance and combat tax evasion, mitigating the erosion of public revenues and alleviating the burden on those dutifully meeting their tax obligations.”
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These nations invite other jurisdictions to join the initiative, aiming to establish a global framework for automatic information exchange, eliminating leeway for tax evasion. IRAS underscores Singapore’s fidelity to international tax transparency standards, aiming to bolster its position as a reliable financial hub.
While CARF gains global attention, it’s not the exclusive protocol for crypto income. In October, the Council of the European Union adopted the eighth iteration of the Directive on Administrative Cooperation (DAC8), addressing crypto taxes. This approach highlights concerted efforts to formulate comprehensive frameworks for managing and reporting cryptocurrency transactions.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
