It is beyond doubt that digitalisation is the next frontier of tax administration. One of the primary indications of this frontier is the growing popularity of digital assets called cryptocurrencies. These new assets have the potential to alter the macroeconomic landscape of nation-states. Importantly, their advent will likely reshape the workings of tax administrations worldwide.
As of August 2022, the global cryptocurrency and assets market was valued at about USD 1.1 trillion. The uptick in the popularity of these new assets presents new challenges for tax administrations with respect to the enforcement of tax obligations. The inherent decentralisation, lack of intermediaries, and anonymity of economic activities associated with cryptocurrencies, particularly, heighten the propensity of non-compliance of tax obligations. Moreover, these technologies are being touted as the new conduits for IFFs, tax avoidance, and evasion.
The rise of digital assets and its associated risks to domestic revenue mobilisation (DRM) necessitates a proactive stance from tax administrators, i.e., tax administrators must stay abreast of the latest development in the field of cryptocurrencies and beyond. The complexities associated with digital assets, hence, warrant frequent peer-to-peer knowledge exchange between and among tax administrators and experts worldwide.
Againt this background, on 18 November 2022, the Network of Tax Organisations (NTO) will hold a webinar on ‘Understanding and Addressing Tax Compliance in the age of Cryptocurrencies” to discuss the challenges and opportunities of digital assets like cryptocurrencies.
The webinar will feature presentations from the Canadian Revenue Agency and the TRM-Labs. These presentations will provide perspectives on new developments in the field of digital assets with respect to tax administration. The event will also bring a regional tax organisation perspective on the matter.
For more information and event participation, contact email@example.com.