EU Wants to Introduce Blockchain in Taxation
The European Parliament has voted in favour of a decision that represents a significant step for the blockchain space.
The resolution tackles both tax evasion through crypto assets and the streamlining of rules for their taxation.
This solution attempts to define what makes an event taxable and suggests that converting from crypto to fiat currency is the most realistic option.
The European Commission has not yet clearly defined this and other possible taxable events and is considering the borderless nature of cryptocurrencies.
In addition, the exchange of taxpayer information by international tax administrations will need to include information on crypto assets. However, the policy also calls for “simplified tax treatment” for smaller transactions.
Blockchain technology is also being pushed as a tax collection tool, identifying the technology’s potential to “automate tax collection, curb corruption and better identify ownership of tangible and intangible assets, allowing for better taxation of mobile taxpayers”, the European Parliament’s announcement said.
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The Commission is urged to introduce blockchain technology into taxation programmes. It is also encouraging EU member states to reform their tax authorities.
The dossier was adopted in Parliament’s plenary session by an overwhelming majority of 566 votes in favour, 7 votes against and 47 abstentions. The lead MEP in the report is Lydia Pereira, a member of the centre-right European People’s Party in Parliament.