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The New Zealand Minister of Revenue has submitted a new proposal to implement the crypto reporting framework created by the Organisation for Economic Co-operation and Development (OECD).&nbsp;
On Aug. 26, New Zealand’s Minister of Revenue, Simon Watts, <a data-ct-non-breakable="null" href="https://www.taxpolicy.ird.govt.nz/news/2024/emergency-response-tax-bill-introduced" rel="null" target="null" text="null">introduced</a> a new bill titled Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures). 
Within the bill, Watts proposed confirming annual income tax rates, tax relief measures, the implementation of the OECD’s Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS).&nbsp;
<h2 id="new-requirements-for-crypto-service-providers">New requirements for crypto service providers</h2>
With the new bill, reporting crypto-asset service providers (RCASPs) based in New Zealand will be <a data-ct-non-breakable="null" href="https://www.taxpolicy.ird.govt.nz/-/media/project/ir/tp/publications/2024/2024-taxation-emergency-response-bill/bill-commentary.pdf?modified=20240823040626&amp;modified=20240823040626" rel="nofollow noopener" target="_blank" text="null">required</a> to collect information on reportable users that operate through their platforms starting on April 1, 2026. Furthermore, the crypto providers must report the information to Inland Revenue by June 30, 2027.&nbsp;
The information collected by the Inland Revenue will be shared with relevant tax authorities worldwide if it pertains to reportable users in other jurisdictions. This exchange of information will be completed by Sept. 30, 2027.
Simply put, traders who use exchanges in New Zealand will have their transaction data reported to the government. According to the tax agency, this will ensure that profit derived from crypto trading is properly taxed.&nbsp;
The government agency stressed that with the development of crypto assets, tax authorities do not have visibility over income coming from crypto trading. The agency said there has been an increased drive on the international stage to ensure that tax authorities “retain visibility over income or investment earning opportunities that are facilitated for individuals through large-scale intermediaries.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/switzerland-crypto-tax-reporting-carf" rel="null" target="null" text="null">Swiss leaders plan to enforce global crypto reporting framework</a>
<h2 id="penalties-for-noncompliance">Penalties for noncompliance</h2>
According to the New Zealand government, RCASPs who fail to comply with the new reporting measures will be fined 300 New Zealand dollars ($186) for each instance of failing to comply with CARF requirements. The penalty is capped at 10,000 $NZ ($6,200).&nbsp;
The agency clarified that RCASPs will not be held liable for penalties if the reason for noncompliance is beyond their control. However, if service providers do not take “reasonable care” to meet CARF requirements, they could be fined between 20,000 to 100,000 $NZ ($12,000 to $62,000).
Users who fail to provide information necessary to comply with the reporting rules could also be subject to a 1,000 $NZ ($621) fine.&nbsp;
 Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/best-worst-countries-crypto-taxes-crypto-tax-tips/" rel="null" target="null" text="null">Best and worst countries for crypto taxes — Plus crypto tax tips</a>

New Zealand introduces OECD crypto reporting framework in new tax bill

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Cointelegraph

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