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The OECD Wants to Tax Your Crypto to Pay for COVID-19 Recovery Efforts

Last updated: | 2 min read

The Organization for Economic Cooperation and Development (OECD) is looking to push its members to adopt crypto tax frameworks.

Source: Adobe/Johanna Mühlbauer

Per a new OECD report, the organization said it wants to promote transparency in all transactions involving cryptoassets, ensuring revenues generated from trading are taxed in the world’s biggest economies.

Intended for the attention of G20 finance ministers and central bank governors, the document stated that, in the aftermath of the ongoing coronavirus pandemic crisis, the global public’s “tolerance for tax evasion and tax avoidance is expected to reach historic lows.”

And this, said the OECD is necessitating a set of measures to “tackle increasingly sophisticated, non-compliant taxpayers and aggressive tax planning, to collect missing and much-needed tax revenues.”

The organization said the new tax reporting framework will use the G20/OECD’s Common Reporting Standard (CRS) as its starting point. It described the CRS as the “global benchmark for ensuring tax transparency with respect to financial assets and income”.

The G20 is a global forum comprising central bank governors from the world’s 19 major economies and the European Union.

The report’s authors wrote,

“Building on the existing framework for the exchange of financial account information will help ensure consistency between the reporting on traditional financial assets and cryptoassets, as well as the income derived from such assets.”

The new information flows will use the same architecture used by the CRS.

The collected data “will be reported by intermediaries to the tax authorities in their jurisdiction of residence. The tax authorities will then automatically exchange the information with the jurisdictions in which the relevant taxpayers are resident,” the OECD wrote.

Given the “dynamic and highly mobile nature of the cryptoasset market,” the OECD said that its objective was to “design the international exchange framework in such a manner that all jurisdictions hosting intermediaries can fully participate.”

And the organization warned that it would not stop at simply making vague-sounding recommendations, concluding,

“We will continue to work on the detailed technical proposals for the new tax reporting framework for cryptoassets, with a view to presenting a comprehensive implementation package to the G20 in 2021.”

Learn more:
Crypto ‘Is Now Finally Being Taken Seriously’ By Taxman – PwC
South Korea May Review Crypto Tax Law ahead of 2021 Regulations
Crypto Question Placement on New Tax Return ‘Signals IRS Action’
Declare Your Bitcoin or We’ll Take 30% of it – Draft Russian Law