The global tax transparency framework with respect to crypto assets will soon be published, the OECD (Organisation for Economic Co-operation and Development) has said, reported Business Line.
This crypto framework will be published in time for the upcoming G20 meeting, it added, after hosting the 14th meeting of Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on October 6-7.
The 14th meeting also discussed work on an implementation package for consistent domestic and international application of Crypto Assets Reporting Framework (CARF) which shall comprise three key elements: designing an international framework for automatic exchange of information collected under CARF, IT solutions to support the automatic exchange and elaboration of effective implementation requirements.
At the OECD convened meeting this past week, attended by delegates from over 135 jurisdictions, there were public sessions on tax transparency, future of tax administration and digitalisation, and tax and development, among others.
During the meeting, participants discussed a report on tax incentives and the Global Minimum Corporate Tax presenting concrete proposals for emerging and developing countries for their consideration as they prepare for its implementation.
The G20 had in April 2021 mandated the OECD to develop a framework for the automatic exchange of tax-relevant information on crypto assets. The CARF defines the relevant crypto assets in scope, transactions, and the intermediaries and other service providers that will be subject to reporting.
Any digital representation of value that relies on a cryptographically secured distributed ledger or a similar technology to validate and secure transactions will be covered under the framework.
The proposed global regime incorporates recent developments in the global anti-money laundering standards of the Financial Action Task Force.