Canada is preparing for tax reporting reform for cryptocurrencies
Date: 2024-04-29 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Canada is joining the global initiative to implement the international tax standard CARF, developed by the OECD, which will ensure the automated exchange of information on cryptocurrencies.
An important step in the fight against tax evasion
The new system will require virtual asset service providers to collect and report clients' tax information to tax authorities, mitigating the risks of tax evasion.
Global Initiative
The Government of Canada plans to implement the CARF system within two years, expecting it to be in use worldwide by 2027. Canada joins 48 OECD members, including the US, Brazil, UK, Germany and Mexico.
Financial support and preparation
The Canadian government is committing significant funds to support this reform, providing $37.6 million to the Internal Revenue Service to implement the new standards and guaranteeing $5.32 million in annual funding.
These steps are part of a global trend towards regulation and transparency in the cryptocurrency space and are aimed at creating a more stable and reliable tax and financial reporting environment.
