The Organisation for Economic Co-operation and Development (OECD) published the long-awaited crypto tax framework on Oct.10. The document is meant to formalize information sharing between the 38 member countries, through automatically sharing crypto-related taxpayer information between jurisdictions.
According to a release, the information sharing intends to, “target any digital representation of value that relies on a cryptographically secured distributed ledger or a similar technology to validate and secure transactions,” though the group intends to draft carve-outs for assets that cannot be used for payments or investment purposes, or might be covered by a separate tax-reporting agreement between member countries, known as the Common Reporting Standard, or CRS. The framework also contains model rules for the domestic taxation of digital assets.
Current digital asset rules, known as the Crypto-Asset Reporting Framework, are meant to complement that existing agreement on tax information sharing between countries.
“The Common Reporting Standard has been very successful in the fight against international tax evasion. In 2021, over 100 jurisdictions exchanged information on 111 million financial accounts, covering total assets of EUR 11 trillion,” Mathias Cormann, OECD Secretary-General, stated in a release, adding:
“Today’s presentation of the new crypto-asset reporting framework and amendments to the Common Reporting Standard will ensure that the tax transparency architecture remains up-to-date and effective.”
The press release announced that the framework will be formally unveiled during a G20 meeting of central bankers and finance ministers in Washington, D.C. later this week. A draft proposal was published earlier this year. The CARF has been nearly two years in the making for the group, an international trade body founded in the 1960s.