Crypto reporting framework discussed during G20 summit, decision made to implement quickly

G-20 leaders decided on Saturday to quickly implement the reporting framework for crypto assets, saying a significant number of member states want to start sharing information on such non-financial assets by 2027.

The Crypto Asset Reporting Framework (CARF) or template is being developed to ensure that such non-financial assets are not used by tax evaders to hide their unaccounted assets.

“We call for the rapid implementation of the CryptoAsset Reporting Framework (“CARF”) and changes to the CRS. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to establish an appropriate and coordinated timeline for the commencement of exchanges by relevant jurisdictions,” said the G20 leaders’ statement, adopted by consensus.

The leaders of 20 developing and developed countries reaffirmed their commitment to continue working together for a globally fair, sustainable and modern international tax system that meets the needs of the 21st century.

“We remain committed to the rapid implementation of the international two-pillar tax package. Significant progress has been made on the first pillar, including the submission of a text for a Multilateral Convention (MLC) and work on Amount B (Simplification and Streamlining Framework). (application of the arm’s length principle to basic marketing and sales activities in the country) as well as the completion of work on the development of the Subject to Tax Rule (STTR) under the second pillar,” the statement said.

After the summit, Finance Minister Nirmala Sitharaman briefed reporters that G20 countries had made significant progress on the two-pillar solution.

“Work has been underway to exchange information on real estate transactions between countries. In collaboration with the OECD, the South Asian Academy Pilot Program to Investigate Tax and Financial Crimes will be launched,” Sitharaman said.

Under the global tax treaty, around 140 countries, including India, have agreed to overhaul global tax norms to ensure that multinational companies pay taxes of at least 15 percent wherever they operate. However, some problematic issues still need to be addressed before implementation.

The G20 countries called on the OECD to develop an integrative framework to quickly resolve the few outstanding issues related to the MLC (multilateral agreement), with the aim of preparing the MLC for signature in the second half of 2023 and to complete work on Amount B by the end of 2023.

“We welcome the steps taken by various countries to implement the Global Anti-Base Erosion (GloBE) Rules as a common approach. We recognize the need for coordinated capacity-building efforts to effectively and specifically implement the two-pillar international tax package.” “We welcome a plan for additional support and technical assistance to developing countries,” the statement said.

The G20 countries also noted the OECD report “Enhancing International Tax Transparency on Real Estate” and the “Global Forum Report on Facilitating the Use of Tax-Treaty-Exchanged Information for Non-Tax Purposes”.

The OECD has proposed an automatic exchange of information on real estate assets between countries and the creation of digitized property registers that certain relevant government agencies can access in real time, amid concerns that investments in foreign real estate are being used to “protect undeclared persons.” Financial assets”.

The report noted that there has been a significant increase in foreign-owned real estate assets over the past decade and that many funds have been shifted from financial investments to purchasing foreign real estate assets.

The Global Forum report also called on countries to adopt a “whole of government” approach to address the challenge of illicit financial flows by sharing information from tax authorities to non-tax authorities such as financial investigation agencies, anti-corruption agencies, customs authorities and prosecutors.

India had pushed at the G20 summit to expand the scope of the Common Reporting Standard (CRS) to include non-financial assets such as real estate under the Automatic Exchange of Information (AEOI) between OECD countries.

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Chrissy Callahan

Chrissy Callahan is a Worldtimetodays U.S. News Reporter based in Canada. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. Chrissy Callahan joined Worldtimetodays in 2023 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing:

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