New Zealand Considers Adopting OECD Cryptocurrency Reporting Standards
Date: 2024-08-27 Author: Henry Casey Categories: IN WORLD
On Monday, New Zealand's Revenue Minister proposed to the legislature to implement the OECD's framework for the automatic exchange of financial information on crypto assets.
Minister Simon Watts proposed to implement this in the Taxation Bill.
The legislative move aims to integrate the OECD Crypto Asset Reporting Framework (CARF) and updates to the Common Reporting Standard into New Zealand legislation.
Accordingly, the proposed amendments are set to come into force on 1 April 2026. From that point on, New Zealand cryptocurrency service providers that provide reporting will be required to collect transaction information. Reportable users must conduct these transactions through the service providers.
The proposal calls for a fine of $300 for providers and $1,000 for users who fail to share the information
A fine of $300 per instance would be imposed on a service provider for non-compliance. At the same time, a crypto asset user would face a fine of $1,000 for failing to provide the required information about themselves or an associated person.
Service providers must provide this information to the Inland Revenue by June 30, 2027. The Inland Revenue will then forward this data to the relevant tax authorities by September 30, 2027.
The Minister noted that the technology behind crypto assets, in particular cryptography, creates unique challenges for tax authorities. As a result, tax authorities do not have the same level of oversight over crypto asset income as they do over income from traditional sources.
New Zealand Moves Towards Tighter Cryptocurrency Regulation Amid Calls for Law Changes
Earlier this year, Andrew Bailey, New Zealand’s Minister for Trade and Consumer Affairs, called for significant changes to the way digital assets are regulated and how blockchain technology is treated.
Last month, New Zealand’s tax office took a more proactive stance, announcing that it would be targeting crypto traders who fail to declare their income on their tax returns.
