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EU Advances in Sharing Cryptocurrency Tax Information

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Gherardo Fiorenzo
Gherardo Fiorenzo is an Italian author with a unique perspective shaped by his experiences in Italy and the US. His thought-provoking articles, short stories, and reviews explore the intersections of language, identity, and culture.

The European Union’s Digital Finance Package proposal, known as DAC8, recommended this cryptography asset Service Providers report their customers’ transactions to help combat tax related criminal Activities such as tax evasion.

this move part of European Union efforts to tighten regulations on cryptocurrency and bring it in Line with traditional financial services.

DAC8 modulation

Under the proposal unveiled by the Commission in December, companies with customers from the European Union must register in Mass and report digital assetsincluding cryptocurrencies and certain non-fungible tokens (NFTs), for tax authorities to address tax evasion through digital assetsalignment with similar moves by the organization for Economic Cooperation and Development (OECD).

the director of The commission’s tax division, Benjamin Angel, tweeted unanimously support for DAC8 modification, which was introduced in Dec 2020 and recently acquired support Ambassadors of the European Union. this comment He was made in Referring to regular interview for Ministers of Economy and Finance ie set Takes place in Belgium on May 16th.

EU proposed DAC8, which calls for encryption asset Received service providers to report customer transactions to combat tax-related crimes support of ambassadors and may enter effect Before the Crypto Asset Reporting Framework (CARF) in Early 2026, pending Board approval of Economic and financial affairs.

An attempt to reduce tax evasion

In an effort to prevent tax evasion through cryptocurrencies, the European Commission has proposed an eighth amendment to the Directive on Administrative Cooperation (DAC8) last yearwhich expanded an existing law intended to prevent taxpayers from hiding taxpayers assets in overseas bank accounts.

The proposal was subject to veto by any state of The 27th member of the European Union countries who Make up Council of the European Union. discussions on hold the bill behind Council doors closed, draft of The agreed text has not yet been published.

However, the latest news Stating that new rules Allow the tax authorities share Statements on the merchant’s crypto holdings were unanimously supported by the member states of European Union, indicating that the formal agreement on The law is likely to be reached soon.

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