OECD seeks input on new tax transparency framework for crypto-assets
The Organisation for Economic Co-operation and Development (OECD) has released a public consultation document on its proposals to modernise the transparency instruments available to tax administrations, given the ways technology is changing investment and payment practices. It observes that, “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.” New payment products are also frequently offered by actors that are not covered by the Common Reporting Standard (CRS).
At the behest of the G20, the OECD has therefore developed a new global tax transparency framework – the Crypto-Asset Reporting Framework, or CARF – that would provide for reporting and automatic exchange of tax-relevant information on crypto-assets between administrations. The framework would require intermediaries to identify their customers and their tax jurisdictions, and report their aggregate transaction values on an annual basis. The OECD is also proposing amendments to the CRS, in order to bring new financial assets, products and intermediaries in scope and ensure efficient interaction with the CARF, while at the same time launching a comprehensive review of the CRS with the aim of further improvements. Feedback is due by 29 April 2022.
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