The much-awaited new global tax transparency framework to provide for the reporting and exchange of information between tax administrations with respect to crypto assets (Crypto Assets Reporting Framework) and amendments to CRS (Common Reporting Standard) report will be published on October 10, the OECD has said.
This will be published for the upcoming G20 meeting, it added after hosting the 14th meeting of Inclusive Framework on BEPS on October 6-7.
The 14th meeting also discussed work on an implementation package for consistent domestic and international application of CARF which shall comprise three elements: (i) designing an international framework for automatic exchange of information collected under CARF, (ii) IT solutions to support the automatic exchange and (iii) elaboration of effective implementation requirements.
It may be recalled that G20 had asked the OECD to develop a framework for the automatic exchange of information on crypto assets.
The new framework would provide for the collection and exchange of tax relevant information between tax administrations, with respect to persons engaging in certain transactions in crypto assets.
At the OECD convened meeting this past week, which was attended by more than 500 delegates from over 135 jurisdictions, there were public sessions on: (i) tax transparency, (ii) future of tax administration and digitalisation, and (iii) tax and development, among others.
During the meeting, participants discussed a report on Tax Incentives and the Global Minimum Corporate Tax presenting concrete proposals for emerging and developing countries for their consideration as they prepare for its implementation.
The Inclusive Framework meeting also discussed capacity building initiatives including the roadmap for developing countries and the latest progress report of the Tax Inspectors Without Borders initiative.
On implementation of two-pillar solution, participants reiterated that the Inclusive Framework will aim to finalise a new Multilateral Convention for implementation of Pillar One by mid-2023, for entry into force in 2024.
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Sudin Sabnis, Partner, Nangia Andersen LLP, said: “Of particular relevance in the context of ongoing tax and regulatory developments on recognition and taxation of crypto currencies in India, a new Crypto Asset Reporting Framework (CARF) is being released to elaborate on an implementation package for designing an international framework for automatic exchange of information and its effective implementation.
Interestingly, implementation of two-pillar solution has been indicated to be on track despite non-committal positions from key countries and the deadline for implementation of Pillar One with a new Multilateral convention has been reiterated to be mid of 2023 with an optimistic entry into force by 2024.