![\"\"](\"https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/11\/SARS.jpg\")
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The South African Revenue Service (SARS) has joined 48 countries in cracking down on people who use crypto assets to dodge taxes and launder money.<\/p>\n
The 48 jurisdictions, including South Africa, pledged to adopt a new Crypto-Asset Reporting Framework (CARF) developed by the OECD and put it into law.<\/p>\n
The CARF is a new international standard on automatic exchange of information between tax authorities.<\/p>\n
According to the OECD, the emergence of crypto assets is a major development in the global tax space.<\/p>\n
These assets can be transferred and held without interacting with traditional financial intermediaries or any central administrator having full visibility.<\/p>\n
The lack of transparency makes it challenging for tax authorities to gain insight into crypto transactions or the location of crypto assets.<\/p>\n
\u201cThese developments have reduced tax administrations\u2019 visibility on tax-relevant activities carried out within the sector,\u201d the OECD said.<\/p>\n
Therefore, the rise in cryptocurrencies and NFTs poses a significant risk to recent gains in global tax transparency.<\/p>\n
The CARF was signed off in March 2023. Last week, the 48 countries adopting the standard set a 2027 deadline for implementing it in their laws.<\/p>\n
South Africa\u2019s exchanges are already required to register for licences with the Financial Sector Conduct Authority before the end of 2023.<\/p>\n
Many of them are optimistic about that development. They argue regulatory oversight will increase public trust in crypto.<\/p>\n
SARS said that, as a jurisdiction that plays host to an active crypto market, it intends to work towards swiftly transposing the CARF into domestic law.<\/p>\n
It will also activate crypto exchange agreements in time for exchanges to commence by 2027, subject to national legislative procedures.<\/p>\n","protected":false},"excerpt":{"rendered":"
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