The United Kingdom has emerged as a global leader in the fight against tax evasion through crypto assets, as it joins hands with 48 countries in an unprecedented joint statement. The agreement aims to counter criminals who exploit cryptocurrencies to avoid paying billions in taxes. This landmark decision showcases the UK’s commitment to closing loopholes in the global tax system and potentially recovering millions of pounds in lost revenue, bolstering government services for its citizens.
CARF: A Game-Changer for Tax Compliance
Minister Victoria Atkins has lauded the international cooperation that led to this breakthrough agreement. By spearheading the Crypto-Asset Reporting Framework (CARF), the UK has ensured that taxpayer information will be shared by crypto platforms with tax authorities. This mandatory exchange of information will facilitate tax compliance and enforcement, with the CARF expected to be effective from 2027. Building upon the success of the Common Reporting Standard, which curbed offshore tax evasion since 2014, the CARF will play a crucial role in thwarting the rising level of tax avoidance prevalent in the growing global crypto market.
“Today we are sending out a strong message that we will not allow criminals to use crypto to avoid paying their fair share. ”
UK’s Position as a Global Leader in Tax Transparency
As the implementation of the CARF gains momentum, the UK stands to potentially recoup hundreds of millions of pounds in previously evaded taxes. With estimates suggesting that tax non-compliance on crypto-asset holdings could range from 55% to 95%, the importance of this global commitment cannot be overstated. By taking a proactive stance on tax transparency, the UK has positioned itself as a champion against global tax evasion, safeguarding public services and sending a strong message to criminals who seek to exploit crypto-assets for their illicit gains.
Read more here at https://www.gov.uk/government/news/uk-leads-international-crackdown-on-crypto-tax-evaders
