EU to Make Crypto Companies Report Tax Details to Authorities

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The EU_Commission today wants to clamp down on crypto tax evasion by forcing foreign providers to register within the EU. jackschickler reports.

The European Commission plans to make crypto companies report user holdings to tax authorities, it said Thursday – but the European Union body says it’s still working on how to enforce the measures on wallet providers or exchanges based outside the bloc., the proposed new tax rules, known as the eighth Directive on Administrative Cooperation or DAC8, seeks to halt billions of euros in evasion by taxpayers stashing crypto abroad.

When asked how the EU will enforce the measures on companies outside the bloc, Gentiloni told reporters, “we will work on that. What counts for us is that EU residents are targeted by these measures,” even if they use crypto providers from elsewhere, he said. The tax plan requires any company with EU clients to register and report within the bloc, but may face logistical challenges in a sector where companies are largely online and sometimes claim not to have headquarters at all.The widely-touted plans, which will also apply to some providers of non-fungible tokens , have drawn immediate reactions from industry observers.

Others have been more calm over the plans, noting that the 38 developed countries in the Organization for Economic Co-operation and Development have already developed norms to stop tax being evaded in overseas bank accounts, which they now want to spread to“Exchange of information across borders already happens in the tax world and authorities are keen to expand the scope of these data sharing arrangements to crypto asset transactions,” Danny Talwar, Head of Tax at Koinly, told CoinDesk in a...

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