complement any standards or regulations put forward by the European Commission. The Organization for Economic Cooperation and Development’s (OECD) Tax Policy and Administration Director, Pascal Saint-Amans recently announced that the organization, which comprises of 37 nations, will be introducing the Common Reporting Standards (CRS). This has been scheduled for 2021. A prominent media outlet, Law360 explained that the new crypto tax standard that will be introduced by the OECD wouldn’t be very different from the CRS it had developed for countering the problem of tax evasion, which has become a rather prominent issue in today’s modern day and age. The development of these new cryptos Common Reporting Standards (CRS) were attributed by Saint-Amans to the overarching need for stronger standards in the crypto regulation space of its member countries.
According to the director, all member countries of the OECD want these standards to be introduced due to which he is expected the CRS to be published next year. These comments by Saint-Amans come just a couple of days after a process was launched by the European Commission (EC). This process is focused on amending and extending the tax evasion laws in relation to crypto assets as a whole. The EC had published the proposal on November 23rd, 2020 and it was primed to get feedback from the public regarding this initiative.
December 21st, 2020 has been chosen as the cut-off date for the public feedback. It is also expected that these news will be implemented in the third quarter of 2021. Even with the recent actions taken by the European Commission, Saint-Amans believes that the crypto tax standards will be established by Europe, soon after the OECD accomplishes this goal. In fact, the director went as far as claiming that this policy arena gives the European Union a prime opportunity to adopt the organization’s standards during this time.
However, it is important to note that these uncoordinated and simultaneous policy developments could put the OECD and the European Commission at odds with one another. There is a possibility that one or more positions in their tax standards and policies could end up counteracting each other, which could result in challenges for the European nations that are part of the OECD. A similar incident had already happened in regard to digital services and their taxation. Nonetheless, the director didn’t take long to dismiss these concerns. Saint-Amans went on to say that the proposals put forward by the OECD would only .
A spokesperson for the EC gave an interview to Law360 and revealed that they would be working with the OECD for developing their crypto tax legislation. The spokesperson stated that the purpose of doing so was to avoid any overlaps or inconsistencies wherever possible. Even so, it was affirmed by the spokesperson that the European Commission is looking out for the European Union, along with all of the bloc’s member states, and they are its priority. Hence, it would put them first before the OECD.