G20 Calls for 'Rapid' Creation of Crypto Tax Reporting and Information Exchange Rules
Date: 2023-09-10 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
According to a September 20 report by The Times of India, G9 leaders are moving quickly toward a cryptoasset reporting system.
Accordingly, for the purpose of this framework, G20 member countries gather and exchange information on the use of cryptocurrency or digital assets. This data is collected to ensure that those who use cryptocurrency do not evade paying taxes.
G20 leaders say the plan must be adopted quickly.
“We are calling for the early implementation of the Crypto Asset Reporting Framework (“CARF”) and amendments to the [common accounting standard] CRS.”
In the same statement, leaders asked the Global Forum on Tax Transparency and Information Sharing to set a timeline for launching an information sharing program. Participating countries aim to start the program by 2027.
The Times of India said the G20 leaders' declaration was adopted by consensus. But the next steps for creating the framework were not spelled out.
According to Indian Finance Minister Nirmala Sitharaman, the IMF and the Financial Stability Board (FSB) will determine the “contours” of crypto structures. This statement was also published in a separate Livemint report.
G20 has broader tax plans
The G20 is set to reform tax reporting more broadly, while recent statements from the group's leaders focus on cryptocurrency reporting. The reporting standard (CRS) applies to other non-financial assets such as real estate.
Also, about 140 countries (including India) are willing to create an interstate two-tier tax program. Such a program would oblige many multinational companies to pay a minimum amount of taxes, even though this has not yet been implemented in reality.
However, G20 leaders expressed a desire to create a governing body for stablecoins in their document dated September 7. This report highlights how stablecoins can create volatility and pose risks to financial stability. This requires new regulation.
India's central role in recent developments is that it is currently hosting the G2023 summit in its capital New Delhi.
