Crypto and tax evasion: Europe decrees the fight and tax cooperation

The Council of the EU announces the cooperation of tax authorities in the struggle against tax evasion of the most rich and through the crypto-assets. Objective: reduce the risks of a use of crypto as refuge for evasion and fraud.

The Commission had laid the groundwork in December 2022. Continuation and end. The EU Member States have found a agreement on the policy to be adopted in the battle against tax evasion. They thus set out their general orientation concerning the administrative cooperation in this field.

Read:  The Bank of Switzerland prepares to issue a digital currency

And within this framework, the States announce that they will henceforth cooperate more actively on two subjects: the Revenues from transactions in crypto-assets and wealthiest individuals. The enhanced cooperation therefore provides for the declaration and automatic exchange of information.

Crypto-assets, potential tools for evasion and fraud

The aim is to strengthen the existing legislative framework by broadening the scope of registration and reporting obligations as well as the overall administrative cooperation of tax administrations,” the Council says.

For Elisabeth Svantesson, the Swedish finance minister, this is about closing loopholes “used in the past to avoid taxation of income.”

The Council also intends to reduce the “ Risk of crypto-assets being used as a haven for tax evasion and fraud “.

This agreement is another example of the European Union’s leading role in the implementation of global standards,” says Elisabeth Svantesson.

Cooperation needed in the face of borderless assets

Until now, some sources of income, including crypto, were not taken into account in exchanges between tax authorities. To be effective, it will therefore be mandatory for digital asset service providers to provide this data to the tax authorities.

Read:  Swiss Bitcoin investment app Relai raises $4.5M

Because, “because of the decentralized nature of crypto-assets, member states’ tax administrations have struggled to ensure compliance with tax laws,” the release notes.

As a result, “the cross-border nature inherent to crypto-assets requires a strong cooperation international administrative cooperation to ensure efficient collection of tax “, justifies the Council.

So what digital assets will be the subject of this expanded cooperation between national authorities within Europe? The Council has based itself on the regulation MiCArecently approved by the EU Finance Ministers. The scope goes far beyond that, however.

Crypto-assets that have been issued in a decentralized manner, as well as stablecoins, including e-money tokens and certain non-fungible tokens (NFTs), are also included in the scope,” it says.

Follow Corners.en on Twitter, Linkedin, Facebook or Telegram to not miss anything.

The Best Online Bookmakers October 06 2024

BetMGM Casino

BetMGM Casino

Bonus

$1,000