48 Countries Join Forces to Combat Crypto Tax Evasion Starting in 2027
Forty-eight countries across six continents have committed to a new tax transparency standard starting in 2027 to fight crypto-related tax evasion.
Countries – including Ireland, Austria, France, Germany, Italy, Croatia, Japan, South Korea, the US, and Canada – penned their signatures. Massive players like China, Russia, and India did not. Out of Africa, only South Africa joined.
The Crypto-Asset Reporting Framework (CARF) is the latest tax transparency standard by the Organisation for Economic Co-operation and Development (OECD), per the UK’s announcement.
Therefore, the countries have announced their “intention” to implement the new framework in time to commence exchanges by 2027, saying:
“It will provide for the automatic exchange of information between tax authorities on crypto exchanges for the purpose of combating offshore tax avoidance and evasion.”
Also, they’ve committed to implementing amendments to the Common Reporting Standard (CRS), an existing tax transparency standard for the exchange of financial account information.
The final agreement on the CARF was reached in March this year, following two years of negotiation, the statement said. It was finalized in June.
The joint statement reads,
“To keep pace with the rapid development and growth of the crypto-asset market and to ensure that recent gains in global tax transparency will not be gradually eroded, we welcome the new international standard on automatic exchange of information between tax authorities developed by the OECD – the Crypto-Asset Reporting Framework (CARF).”
It added that the consistent, timely, and widespread CARF implementation will enhance the signatories’ ability to ensure tax compliance.
It will help them clamp down on tax evasion, it said, which
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