OECD consults on new crypto tax transparency framework – Andrew Park
Andrew Park, Tax Investigations Partner, comments on the OECD’s newly released public consultation document regarding a new global tax transparency framework to provide for the reporting and exchange of information related to crypto assets, in Tax Journal, eprivateclient and International Tax Review.
“This promises to be as significant for breaking crypto secrecy as the fall of banking secrecy was for numbered offshore bank accounts. However, it is not going to happen quite yet – implementation will be a huge logistical exercise for all involved, even once the format of the new rules is agreed and finalised.
“Some people may be tempted to think that they can use the US and its tech firms as a crypto haven because it is not a CRS signatory – however, nothing could be further from the truth. The US IRS shares huge amounts of financial information with HMRC and other friendly tax authorities and is already sharing bulk crypto data with HMRC under the UK/US information sharing agreement. The US has even set up a jointly resourced crypto task force as part of its Joint Chiefs of Global Tax initiative.
“Anyone with concerns that they are non-compliant should seek urgent professional advice, rather than risk much higher possible penalties when they finally are on HMRC’s radar.”