Nearly 50 countries, including the US, are working together to enable automatic information exchange between crypto trading companies and tax authorities.
In a new press release, the United Kingdom (UK) government says the coalition of jurisdictions is working together to create the Crypto-Asset Reporting Framework (CARF) as a means to ensure tax compliance and combat tax evasion.
“To keep pace with the rapid development and growth of the crypto asset market and to ensure that the recent gains in global tax transparency will not be gradually eroded, we welcome the new international standard for automatic exchange of information between tax authorities, developed by the OECD. (Organization for Economic Co-operation and Development) – the Crypto Asset Reporting Framework (CARF).
The widespread, consistent and timely implementation of the CARF will further improve our ability to ensure tax compliance and combat tax evasion, reducing government revenues and increasing the burden on those who pay their taxes.”
Some of the other countries that have joined the effort include Japan, Mexico, Korea, Brazil, Italy, South Africa, Romania, Canada, Spain, Switzerland, Germany, South Korea, France and Singapore, which recently committed via a press release.
According to a joint statement, the final agreement for CARF was reached earlier this year in March, after years of discussions. Furthermore, it states that CARF will be implemented by 2027.
“The final agreement on the CARF was reached in March 2023, after two years of negotiations. It will provide for the automatic exchange of information between tax authorities on crypto exchanges with the aim of combating offshore tax avoidance and evasion.
This statement announces the signatory jurisdictions’ commitment to implement the framework in time to begin exchanges by 2027.”
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