OECD releases final plan to crack down on international tax evasion using crypto

Quick Take

  • The Organisation for Economic Co-operation and Development has published its finalized framework for crypto tax reporting.
  • The guidelines aim to increase regular information sharing between countries in order to cut down on tax evasion using digital assets.

The Organisation for Economic Co-operation and Development's long-in-the-making crypto tax framework was published Monday. The document is meant to formalize information sharing between the 38 member countries, through automatically sharing crypto-related taxpayer information between jurisdictions. 

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. Today's digital asset rules, known as the Crypto-Asset Reporting Framework, are meant to complement that existing agreement on tax information sharing between countries. 

In addition to information sharing between countries, the framework also contains model rules for domestic taxation of digital assets. 

The CARF has been nearly two years in the making for the group, an international trade body founded in the 1960s. A draft proposal was made public earlier this year. 

Start your day with the most influential events and analysis happening across the digital asset ecosystem.

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

“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,