The post New Zealand Proposes Implementation of OECD Crypto Reporting Standards appeared on BitcoinEthereumNews.com.

TLDR: New Zealand proposes implementing OECD’s Crypto-Asset Reporting Framework (CARF) New requirements for crypto service providers to collect and report user information Implementation set to begin April 1, 2026, with first reports due June 30, 2027 Penalties for non-compliance range from NZD 300 to 100,000 for providers Users face NZD 1,000 fine for failing to provide necessary information New Zealand is taking steps to implement the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD). This move, proposed by Revenue Minister Simon Watts, aims to enhance transparency in cryptocurrency transactions and ensure proper taxation of crypto-related income. The proposal was introduced as part of the “Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill” on August 26, 2024. If passed, the new regulations would require New Zealand-based crypto service providers to collect and report information on their users’ transactions starting April 1, 2026. Under the proposed framework, reporting crypto-asset service providers (RCASPs) would need to gather data on reportable users operating through their platforms. This information would then be submitted to Inland Revenue, New Zealand’s tax authority, by June 30, 2027. The collected data would be shared with relevant tax authorities worldwide for users in other jurisdictions by September 30, 2027. The primary goal of this initiative is to provide tax authorities with better visibility over income generated from cryptocurrency trading. As the technology behind crypto assets, particularly cryptography, presents unique compliance challenges, tax officials currently lack the same level of oversight they have with traditional income sources. Fines for Non-Compliance To ensure compliance, the proposal includes a system of penalties. RCASPs that fail to meet the new reporting requirements could face fines of 300 New Zealand dollars (approximately $186) per instance of non-compliance, with a cap of 10,000 NZD ($6,200). However, if…

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Filed under: News - @ August 27, 2024 10:27 am