This file photo, taken Oct. 24, 2023, shows a man checking prices of cryptocurrency at a trading room in Seoul. (Image courtesy of Yonhap)
SEOUL, Nov. 10 (Korea Bizwire) — South Korea joined the United States, Britain, Japan and dozens of other countries to issue a statement calling for the promotion of the international framework on automatic exchanges of information on crypto-asset transactions to ensure tax compliance, the finance ministry said Friday.
In August 2022, the Organization for Economic Cooperation and Development (OECD) approved the Crypto-Asset Reporting Framework (CARF), which provides for the reporting of tax information on transactions in cyber assets in a standardized manner, with a view to automatically exchanging such information among tax authorities.
The Group of 20 nations have expressed their support for the framework, and the OECD set 2027 as a target year for its implementation.
On Friday, a total of 48 nations, including South Korea, issued the joint statement to ensure the swift push for domestic procedures for its implementation and to encourage more nations to join the new scheme, according to the Ministry of Economy and Finance.
“The widespread, consistent and timely implementation of the CARF will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes,” the statement read.
The nations said they will work toward swiftly transposing the framework into their respective domestic law and activating exchange agreements by 2027, which is meant to keep pace with the rapid development and growth of the crypto-asset market and to ensure that recent gains in global tax transparency will not be eroded.
“We invite other jurisdictions to join us with a view to enhancing the global system of automatic information exchange which leaves no hiding places for tax evasion,” the statement said.
(Yonhap)
