Organizations and tax authorities appear to be pondering over introducing new laws and standards related to cryptocurrency taxes as a new tax standard is being introduced for digital assets. The tax director of the Organisation for Economic Co-operation and Development (OECD)’s Centre for Tax Policy and Administration Pascal Saint-Amans is expecting the launch of a cryptocurrency tax reporting standard by the end of the year 2021.
As reported by Law360, the 37 member-consisted intergovernmental economic organization OECD is planning on developing a tax reporting standard for cryptocurrencies which will be based on the principles of the global Common Reporting Standard (CRS) which was developed by the OECD Council on the request of the international forum G20 back in the year 2014 in a bid to combat the evasion of taxes. All of the principles present in the global Common Reporting Standard will be utilized for dealing with digital asset taxation.
The OECD is introducing a version of this global CRS standard for cryptocurrencies. As per the statement of Pascal Saint-Amans, the organization intends to release this cryptocurrency tax reporting standard by the end of the next year. The OECD director said that this new crypto tax standard will serve as a common approach for all countries that are looking forward to different ways to cope up with digital currency taxation and its evasion.
Saint-Amans stated in his interview that all of their member countries want the rollout of this cryptocurrency tax standard as soon as possible. So, he said that the chances are that the CRS for cryptocurrencies will be introduced by the end of 2021. However, he did not reveal the exact date of the release of this tax standard. As his statement reads:
“Fundamentally the idea is to have a standard which would be roughly equivalent to the CRS, if it is not the CRS. The timeline to deliver is probably ’21, sometime in ’21, because there is appetite by all countries now.”
These remarks uttered by Saint-Amans have come following the recent proposal of the European Commission (EC) in which it announced the launch of a process for the amendment of cryptocurrency taxation laws. The initiative dubbed as “Tax fraud & evasion – strengthening rules on administrative cooperation and expanding the exchange of information” was proposed and issued by the European Commission recently on the 23rd of November. The new standard being developed by the OECD is set to further complement the work being already done in Europe.