The Organization for Economic Cooperation and Development (OECD) has issued a report to the G20 finance ministers and central bank governors. And what’s the report all about? OECD is worried of cryptocurrency and blockchain as being a threat to Tax Transparency.
The OECD states that “technologies like blockchain give rise to both new, secure methods of record-keeping while also facilitating “crypto-currencies” – which are described as “pos[ing] risks to the gains made on tax transparency in the last decade.”
According to a report from OECD, which states that:
“Some work is already underway to better understand and address these developments,”
However, the OECD asserts that “further work is required to ensure that governments can harness the opportunities these changes bring while ensuring the ongoing effectiveness of the tax system.”
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The report states that “The Forum on Tax Administration, working with the Inclusive Framework, will develop practical tools and cooperation in the area of tax administration and will also examine the tax consequences of new technologies (e.g., crypto-currencies and blockchain distributed ledger technology),” with an update on the forum’s findings expected to be delivered in 2019.
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