The European Union decided to "close loopholes" in the use of cryptocurrency for tax evasion
Tax authorities will carry out mandatory automatic exchange of information on crypto assets
On Tuesday, the EU Economic and Financial Affairs Council agreed on a common approach to reporting and automatic exchange of information on crypto assets and taxation of the wealthiest individuals in order to prevent tax evasion.
Source. This was reported by Interfax-Ukraine.
"Today, we are tightening the rules of administrative cooperation and closing loopholes that were previously used to evade income taxation," Swedish Finance Minister Elisabeth Svantesson said after the meeting.
"This reduces the risk of crypto assets being used for tax evasion and tax fraud. The agreement is another example of the EU being a leader in the implementation of global standards," she continued.
"In practice, this will mean more active use of registration and reporting and increased cooperation between tax authorities.
The harmonized EU directive will now cover more categories of assets, including crypto assets.
Tax authorities will carry out a mandatory automatic exchange of information that should come from accountable crypto asset service providers.
The former decentralized nature of crypto assets has prevented EU tax authorities from enforcing tax laws.
The cross-border nature of crypto assets also requires close international cooperation to ensure effective tax collection, the EU Council press release emphasizes.
Background. Read more about this in the article "EU adopts the world's first comprehensive cryptocurrency regulation".
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