47 nations sign pledge to adopt CARF by 2027
10 Nov 2023
A total of 47 national governments have released a joint pledge to “swiftly transpose” the Crypto-Asset Reporting Framework (CARF) into their system of law.
The statement regarding the new global standard on the automatic exchange of information between countries’ tax authorities was issued on Friday.
The Organisation for Economic Cooperation and Development (OECD) originally published the CARF back in 2022. Initially developed from a mandate from the G20 from April 2021, the CARF framework requires reports on the type of crypto and digital asset transaction, whether it be carried out via an intermediary or a service provider, Cointelegraph reports.
The authors of the statement are planning to initiate exchange agreements for information exchanges to get underway by 2027.
The text of the statement reads: “The widespread, consistent and timely implementation of the CARF will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes.”
The countries who have joined the pledge include all 38 member states of the OECD, as well as the Cayman Islands and Gibraltar. However, crucial markets including China and Hong Kong, Turkey, Russia and the United Arab Emirates are not included. Furthermore, no countries in Africa are involved, and solely Chile and Brazil are included from Latin America, the Cointelegraph report goes on to add.
As well as the Crypto-Asset Reporting Framework, last month the eighth iteration of the Directive on Administrative Cooperation (DAC8) was officially adopted by the Council of the European Union.
The objective of this crypto tax reporting rule is to give tax collectors the power to oversee and evaluate every crypto transaction undertaken by individuals or organisations within any other member state in the EU.
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