47 Tax Authorities Commit to Crypto-Asset Reporting Framework

• Tax authorities from 47 countries commit to implementing CARF
• The joint statement noted the necessity of CARF to combat tax evasion and reduce the burden on taxpayers
• Signatory jurisdictions with active crypto markets plan to swiftly incorporate CARF into domestic laws

The Inland Revenue Authority of Singapore (IRAS) and tax authorities from various countries and territories have issued a joint statement on the collective commitment to implementing the Crypto-Asset Reporting Framework (CARF).

CARF is a new international standard developed by the Organization for Economic Co-operation and Development (OECD) for the automatic exchange of information between tax authorities. 

The statement, signed by 47 tax authorities, stressed the need to keep pace with the rapid development of the crypto asset market. The countries include the United States, the United Kingdom, Singapore, Australia, Brazil, Canada, France, Japan, South Korea, and Switzerland.

Additionally, the Crown Dependencies of Guernsey, Jersey, and Isle of Man, as well as the UK’s Overseas Territories of the Cayman Islands and Gibraltar, are part of this initiative.

Notably, part of the objective of CARF is to ensure that recent gains in global tax transparency are not gradually eroded. The implementation of CARF is expected to enhance the ability of tax authorities to ensure compliance and combat tax evasion, ultimately preserving public revenues and reducing the burden on law-abiding taxpayers.

Furthermore, the countries hosting active crypto markets intend to swiftly incorporate the CARF into their domestic laws and activate exchange agreements by 2027. However, the joint statement noted this timeline is subject to respective legislative procedures.

Additionally, the signatory jurisdictions to the Common Reporting Standard plan to implement agreed-upon amendments in a bid to maintain consistency. Ultimately, the joint statement extended an invitation to other jurisdictions to join the effort of enhancing the global system eliminating safe havens for tax evasion.