The first aspect of the consultation, which was published on 22 March 2022, concerns a new framework for the automatic exchange of information on crypto assets, known as the crypto-asset reporting framework (CARF). The CARF will cover those assets that can be held and transferred in a decentralised manner without the intervention of traditional financial intermediaries. Businesses that provide services to exchange such assets for other crypto assets or monetary currency will need to carry out due diligence procedures to identify their customers, and then report the aggregate values of the exchanges and transfers for these customers on an annual basis.
The second aspect involves extending the scope of the common reporting standard (CRS) to cover electronic money products and central bank digital currencies. The proposals also include changes to cover indirect investments in crypto assets through investment entities and derivatives. In addition, it proposes improvements in due diligence procedures and reporting outcomes to increase the usability of CRS information for tax administrations and limiting burdens on financial institutions, where possible.
Written responses to the consultation are invited until 29 April via email and a public consultation meeting will be held at the end of May 2022.
Following the consultation, the OECD plans to finalise the rules and commentary to the CARF and the amended CRS. The OECD is due to report back to the G20 on the CARF and the amended CRS at the G20’s October 2022 meeting.
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More support on tax
ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.Sign up for TAXwireJoin the Tax Faculty
More from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.