Canada To Adopt International Standard For Crypto Tax Reporting – Here’s What That Means
Canada is set to become one of the first nations to adopt the International Crypto-Asset Reporting Framework (CARF) for taxation by 2026, as outlined in a supplement to the country’s 2024 annual budget, as reported by the National Post on April 16.
The Organisation for Economic Co-operation and Development (OECD) agreed to the framework in August 2022 and is scheduled to be implemented in 47 countries by 2027, as pledged in November 2023.
#Canada to begin implementing international #crypto tax reporting standard :
Canada is aiming to have the #OECD standard for crypto asset #tax reporting in place by 2027, as agreed with 46 other countries.
According to a supplement to the 2024 annual budget, Canada expects to… pic.twitter.com/oGWXFMKtfM
— TOBTC (@_TOBTC) April 18, 2024
“Just as crypto-assets pose financial risks to middle-class Canadians, the rapid growth of crypto-asset markets poses significant risks of tax evasion,” the 2024 federal budget states. “Regulation and the international exchange of tax information must keep pace with tax evasion threats to ensure a fair tax system.”
The CARF places new reporting requirements on “crypto asset service providers” (CASPs) including crypto exchanges, brokers, and ATM operators. Stablecoins, derivatives issued as crypto tokens, and non-fungible tokens (NFTs) are included as examples of “crypto assets.”
Crypto asset service providers (CASPs), such as exchanges and ATM operators, will be obligated to report various transactions to the CRA. This includes crypto-to-fiat and crypto-to-crypto transactions and any crypto transfers exceeding $50,000 USD, encompassing payment processing activities.
CASPs must also collect information on their customers, including “name, address, date of birth,
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