As many as 48 countries committed to a tax-transparency standard starting in 2027 that will provide for the automatic exchange of information between jurisdictions to combat tax evasion on crypto exchanges, according to a joint statement and individual announcements by the U.K., Singapore, and Luxembourg.
The agreement adds the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), which was finalized in June, to the organization’s Common Reporting Standard (CRS), an information standard for the automatic exchange of information regarding financial accounts between tax authorities.
“Final agreement on the CARF was reached in March 2023, following two years of negotiation,” according to the release from the U.K. “The U.K. leads on first of its kind global commitment to combat offshore crypto tax evasion. It will mean crypto platforms will need to start sharing taxpayer information with tax authorities, which currently they do not do, ensuring these authorities can exchange information to enforce tax compliance.”
The 2027 deadline for implementation also applies to the updates in the Common Reporting Standard with the aim of “swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027, subject to national legislative procedures.”
Several nations with a sizeable interest in crypto, such as Turkey, India, China, Russia and all African countries, are not signatories to the statement.
“We invite other jurisdictions to join us with a view to enhancing the global system of automatic information exchange which leaves no hiding places for tax evasion,” the statement said.
Edited by Sheldon Reback.