![Crypto Reporting Framework Discussed During G20, Decision Taken on Swift Implementation Crypto Reporting Framework Discussed During G20, Decision Taken on Swift Implementation](https://i0.wp.com/i.gadgets360cdn.com/large/crypto_btc_ether_worldspectrum_pixabay_large_1651642979248.jpg?fit=%2C&ssl=1)
Leaders of the Group of 20 industrialized nations decided on Saturday to quickly implement a crypto-asset reporting framework, saying a large number of member states wanted to start exchanging information on such non-financial assets by 2027.
A 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 wealth.
“We call for the rapid implementation of the Crypto-Asset Reporting Framework (“CARF”) and CRS Amendments. We ask the Global Forum on Tax Transparency and Information Exchange to determine an appropriate and coordinated timeline for relevant jurisdictions to begin exchanges,” reads the G20 Leaders’ Declaration , and passed unanimously.
Leaders of 20 developing and developed countries reaffirmed their commitment to continue cooperation to establish a globally fair, sustainable and modern international tax system suitable for the needs of the 21st century.
“We remain committed to the rapid implementation of the two-pillar international tax package. Significant progress has been made on Pillar One, including the delivery of the Multilateral Convention (MLC) text, and work on Amount B (simplified and simplified framework) to apply the arm’s length principle domestic baseline marketing and distribution activities) as well as completing the formulation of tax payment rules (STTR) under Pillar 2,” the statement said.
After the summit, Finance Minister Nirmala Sitharaman briefed reporters that the G20 countries had made substantial progress on the two-pillar solution.
“Efforts are already underway among countries to exchange information on real estate transactions. The South Asia Institute has launched a pilot project on tax and financial crime investigations in collaboration with the OECD,” Sitharaman said.
Under this global tax deal, around 140 countries, including India, have agreed to overhaul global tax norms to ensure that multinational companies pay tax at a rate of at least 15% wherever they do business. However, some thorny issues still need to be resolved before implementation.
The G20 countries call on the OECD to develop an inclusive framework and quickly resolve the few outstanding issues related to the MLC (Multilateral Convention), with a view to preparing the MLC for signature in the second half of 2023 and completing Section B work before the end of 2023. The end of 2023.
“We welcome the steps taken by countries to implement the Global Anti-Base Erosion (GloBE) rules as a common approach. We recognize the need for coordinated efforts to build capacity for the effective implementation of the two-pillar international tax package, in particular, Welcomes plans to provide additional support and technical assistance to developing countries,” the declaration said.
The G20 countries also noted the OECD report on “Enhancing Transparency in International Taxation of Real Estate” and the “Global Forum Report on Facilitating the Use of Information Exchanged in Tax Treaties for Non-Tax Purposes.”
Amid concerns that foreign real estate investment is being used to “shelter undeclared assets,” the OECD recommends that countries automatically exchange real estate asset information and establish digital ownership registers that can be accessed in real time by designated relevant government agencies. assets”.
The report pointed out that foreign real estate assets have increased significantly in the past decade, and a large amount of funds have been diverted from financial assets to the purchase of foreign real estate assets.
The Global Forum report also calls on countries to adopt a “whole-of-government” approach to tackling the challenge of illicit financial flows through information sharing between tax authorities and non-tax agencies such as financial intelligence units, anti-corruption agencies, customs authorities and prosecutors.
India has been pressing for the expansion of the scope of the G20 Common Reporting Standard (CRS) to include non-financial assets such as real estate within the ambit of the Automatic Exchange of Information (AEOI) among OECD countries.
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