Definition ∞ A tax transparency standard is an international agreement or framework designed to promote the exchange of financial information among tax authorities globally. These standards aim to combat tax evasion and ensure fair taxation by providing governments with data on their residents’ financial activities in other jurisdictions. Examples include the Common Reporting Standard (CRS) and the recently proposed Crypto-Asset Reporting Framework (CARF). They establish common rules for data collection and reporting.
Context ∞ The emergence of digital assets has spurred the development of new tax transparency standards to address the unique characteristics of crypto transactions. Current efforts, such as the CARF, seek to extend the principles of existing frameworks to virtual assets. Discussions presently concern the implementation challenges for virtual asset service providers and the need for global consistency in reporting requirements. Future developments anticipate broad international adoption of these specialized standards, enhancing fiscal oversight of the digital asset economy.
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