International tax evasion using crypto is one of the evils plaguing the global economy. Several countries continue to multiply actions alone to counter this without real success. Aware that only collective action can put an end to this scourge, the Member States of the Organization for Economic Co-operation and Development (OECD) have decided to join forces. The OECD has just communicated its finalized crypto tax framework. From now on, the 38 Member States will be able to share judicial information among themselves. In this way, they hope to dismantle large-scale tax evasion networks.
Finalized OECD crypto tax plan finally sees the light of day
the final OECD framework to combat tax avoidance through crypto globally is finally available. Through this document, the courts of the Member States undertake to share information to decrease tax evasion from cryptos.
The recently published document will therefore facilitate the automatic sharing between different data jurisdictions. This is the taxpayer information related to the crypto industry. This sharing is simply intended to “target any digital representation of value that relies on a cryptographically secured distributed ledger or similar technology to validate and secure transactions”specifies the press release of the organization.
Entry into force of the model rules for taxation
Apart from sharing crypto-related information, the OECD document also touches on some tax issues. There are also regulations on the national taxation of virtual assets. The organization founded in 1960 needed two years to design this new framework. Earlier, at the beginning of the year, we witnessed the publication of the draft proposal.
Mathias Cormanthe secretary general of the organization, expresses his satisfaction in these terms: “The Common Reporting Standard has been very effective in combating international tax evasion. In 2021, more than 100 jurisdictions exchanged information on 111 million financial accounts, covering total assets of €11 trillion”.
Furthermore, he adds that: “Today’s presentation of the new Crypto Asset Reporting Framework and changes to the Common Reporting Standard will ensure that the tax transparency architecture remains current and effective. “. The official presentation of common response plan will take place in Washington DC next week. The OECD press release specifies that there will be all the central bankers of the G20. It will be the same for all the finance ministers of the main powers.
In sum, international tax evaders through crypto will have the jurisdictions of member countries hot on their heels. We will have to closely monitor the impact that this will have on this scourge. We will be able to assess the relevance of this framework with regard to the expected results.
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