Cryptoasset Reporting Framework and Common Reporting Standard
Consultation on the UK implementation of the OECD Cryptoasset Reporting Framework and amendments to the Common Reporting Standard, seeking views on extension to domestic reporting.
OECD Automatic Exchange of Information (AEOI) agreements are a key method by which the UK tackles offshore tax evasion. The Cryptoasset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS2) is the latest AEOI package that ensures we close gaps in existing transparency rules created by developments in fintech.
The CARF is a wholly new standard that addresses tax non-compliance using cryptoassets and CRS2 is an update to the existing framework on offshore accounts. Following public consultation at the OECD, the rules and commentary for the package has been agreed but the practical implementation is not prescribed in detail.
This consultation sets out the details of the rules and invites views on the UK’s proposed implementation. It also seeks views on the potential benefits and drawbacks of extending the CARF/CRS international standards to require UK reporting entities to include information on UK residents.