The director of the OECD's tax center has revealed that the organisation expects to release a tax reporting standard for crypto assets by the end of next year.
According to Law360, Pascal Saint-Amans, the director of the OECD's Centre for Tax Policy and Administration will introduce a common reporting standard, or CRS, for crypto assets in 2021.
Saint-Amans stated that the crypto tax standard "would be roughly equivalent to the CRS" developed by the Organisation for Economic Co-operation and Development to combat tax evasion.
The director attributed the likely development of the crypto tax CRS to a desire to introduce stronger standards surrounding crypto regulations among its member-countries.
OECD is an intergovernmental economic organization with 37 member countries, founded in 1961 to stimulate economic progress and world trade.
The standard that the OECD is working on should be closely reminiscent of the common reporting standard (CRS) that was adopted in 2014 to standardize the information regulators collected from traditional financial institutions and shared with each other to combat tax evasion. Saint-Amans said:
Amans expects that the OECD will establish crypto tax standards before Europe, describing the policy arena as an "opportunity for the EU to align with [the OECD's] standard."
However, uncoordinated simultaneous development could result in the OECD and Europe establishing particular policy positions that contradict each other — threatening to create regulatory challenges for the OECD's European members, as has been recently seen concerning the taxation of digital services.
Amans dismissed these concerns, however, asserting that any proposal from the OECD would be "complementary" to EU regulations. Speaking to Law360, a European Commission spokesperson indicated the organization is working "in parallel" with the OECD to "avoid overlaps or inconsistencies to the extent possible."