The Organization for Economic Co-operation and Development (OECD) is looking to create a standardized framework for crypto financial reporting similar to its previous work on financial accounts.
As different countries create varying crypto tax policies, a unified reporting protocol for cryptocurrencies could help to promote tax transparency for the emerging virtual currency space.
OECD Crypto Financial Reporting Standard May Precede EU’s DAC8
According to a Nov. 26 report by Law360, the OECD plans to introduce a crypto financial reporting standard in 2021. The intergovernmental economic organization will reportedly draw from its 2014 Common Reporting Standard (CRS) to develop a similar guideline tailored to cryptocurrencies.
Speaking during an interview, OECD tax policy chief, Pascal Saint-Amans remarked:
“Fundamentally the idea is to have a standard which would be roughly equivalent to the CRS if it is not the CRS. The timeline to deliver is probably ’21, sometime in ’21, because there is an appetite by all countries now.”
According to Saint-Amans, the OECD’s work will likely precede similar efforts in the EU to extend the region’s financial reporting protocols to cover cryptocurrencies. Earlier in November, the EU opened up its planned amendment of the directive on administrative cooperation (DAC) for public comments.
As part of DAC, the EU wants to mandate all online platforms to disclose user transactions both from within and outside the region. The move will be the latest amended EU policy to include cryptos following the fifth anti-money laundering directive (AMLD-5).
Global Coalition to Fight Crypto Tax Evasion
The OECD news is also the latest effort to foster greater international cooperation in crypto tax compliance policing. Back in 2018, the US Internal Revenue Service (IRS) partnered with tax agencies in the UK, Australia, Canada, and The Netherlands to form a coalition called the Joint Chiefs of Global Tax Enforcement (J5).
Meanwhile, tax laws continue to form a major part of emerging crypto regulations across the globe. Tax agencies in countries like the US and Spain continue to warn traders against evading legally prescribed levies on cryptocurrency trading.
In countries like Canada, tax agencies are demanding user details directly from crypto exchanges. Earlier in November, BeInCrypto reported that South Korea was considering postponing the enforcement of a 20% capital tax on cryptocurrency trading profits until 2022.