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OECD tax to launch international crypto tax standards in 2021

Nicholas Say
Nicholas Say

The director of the OECD’s Centre for Tax Policy and Administration Pascal Saint-Amans stated that a common reporting standard or CRS for crypto assets would be coming in 2021 under the development of the 37-nation organization. In compliance with Law 360, Amans mentioned the "CRS equivalent" crypto-tax standard established by the OECD in the battle against tax evasion. The Director attributes the evolution of the CRS cryptotax to the need for its member-countries to implement higher criteria for crypto-laws: “The timeline to deliver is probably '21, sometime in '21, because there is an appetite by all countries now.”

Aman’s statement followed the launch of a process under the European Commission to update and expand its tax evasion laws applicable to crypto assets. The EC is seeking public feedback on the proposal since Nov.23, the due date for public input received is until Dec.21. The introduction of new laws are scheduled during the third quarter of 2021. Despite the EC motives, Amans expects the OECD to roll out crypto-tax standards before Europe which represents the policy arena as an “opportunity for the EU to align with [the OECD’s] standard.”

Uncoordinated co-development, however, could lead both parties to establish complex, mutually conflicting policy positions, threatening to pose legal challenges for the OECD's European members. Regarding these concerns, Aman stated that any OECD plan would "complement"the EU rules. As Law360 reported, a European Commission spokesman has also confirmed that the institution works “in parallel”with the OECD in effort to minimize conflicts or contradictions.