European Parliament calls to leverage blockchain for more efficient tax collection
The European Parliament has called for a crackdown on blockchain tax evasion and an end to crypto's borderless status.
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During the plenary session of the National Assembly yesterday (October 4), the European Parliament voted, with an overwhelming victory of 7 votes against and 47 abstentions, in favor of a resolution to use blockchain to coordinate the evaluation process. tax in the EU, was proposed by the MP Nédia Pereira, member of the European People's Party.
The consulted resolution defines what constitutes taxable behavior and suggests that converting from crypto to fiat is the most viable option. The European Commission is also still considering ending the borderless nature of crypto.
Specifically, the resolution argues that crypto should be taxed fairly, transparently, and efficiently. Taxpayers need a detailed explanation of the crypto assets they own. However, the policy also states that "simplified tax treatment" should be given to traders who do not trade frequently or have small trading volumes.
According to the announcement:
“Blockchain technology is also being promoted as a tax collector, identifying the technology's potential to automate tax collection, curb corruption, and better define ownership of tangible and intangible assets for the public. better taxing mobile taxpayers.”
But the committee first called for leveraging blockchain for better tax collection and encouraged member states to reform their tax authorities.
Oct 05, 2022