More Than 40 Nations To Implement OECD’s Crypto Reporting Framework

More Than 40 Nations To Implement OECD’s Crypto Reporting Framework

More than 40 nations agreed to implement the crypto reporting framework developed by the Organisation for Economic Co-operation and Development (OECD), as mandated by the G20. The widespread, consistent, and timely implementation of this crypto reporting framework “will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes,” they said.

48 Jurisdictions Agree On Implementing CARF

Forty-eight jurisdictions across more than 40 countries issued a joint statement on Friday to implement the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD), as mandated by the G20.

The statement was jointly issued by Armenia, Australia, Austria, Barbados, Belgium, Belize, Brazil, Bulgaria, Canada, Chile, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, the Netherlands, Norway, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, the UK, and the US, including the Crown Dependencies of Guernsey, Jersey, and the Isle of Man, as well as the UK’s Overseas Territories of the Cayman Islands and Gibraltar.

“We welcome the new international standard on automatic exchange of information between tax authorities developed by the OECD, the Crypto-Asset Reporting Framework (CARF),” the statement opens, adding:

"The widespread, consistent, and timely implementation of the CARF will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes."

The implementation of the CARF aims to “keep pace with the rapid development and growth of the crypto-asset market and to ensure that recent gains in global tax transparency will not be gradually eroded,” the statement notes.

Stage Set for Enhanced Global Tax Compliance

The CARF was developed to fulfill the mandate of the G20. It provides a standardized basis to report tax information on crypto transactions so that this information can be automatically exchanged with taxpayers’ jurisdictions of residence annually.

All the above jurisdictions stated that they “intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027, subject to national legislative procedures as applicable.”

In conclusion, the statement notes:

"We invite other jurisdictions to join us to enhance the global system of automatic information exchange, which leaves no hiding place for tax evasion."

The joint statement resonates with a call for other jurisdictions to join this international effort, creating a robust system of automatic information exchange that leaves no room for tax evasion. 

What is your take on these jurisdictions implementing the OECD’s crypto reporting framework? Please share your thoughts and opinions in the comments section below.