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] The topic of cryptocurrency / OIC regulation is high on the global agenda today. Last week, at a two-day meeting in Madrid, Spain, the Board of Directors of the International Organization of Securities Commissions (IOSCO), composed of 32 global market regulators, agreed that a thorough analysis of the nature of cryptocurrencies was necessary. regulations to protect the rights of investors. On March 19, the G20 Finance Ministers and Central Bank Governors will meet in Buenos Aires, Argentina, and April 20 in Washington to discuss the same topic

Digital Tax Proposed by the European Commission on the technological giants

Meanwhile, the European Commission has proposed a temporary European tax on digital companies whose revenues exceed the 750 million euros (922 million dollars) in the world and whose Digital revenues reach at least 10 million euros a year. Excluded from the tax are revenues generated by electronic media, streaming, online gaming, IT solutions, cloud computing services and "fintech" activities. The Commission proposal is likely to be amended before its publication scheduled for the second half of March

The transborder temporary tax of one to five percent would apply to digital transactions in the future. 39, EU, between EU countries and third countries, and purely national digital transactions based on the location of their users, rather than on the headquarters of companies. This will reduce the attractiveness of small, low taxing states until a more comprehensive solution is established for a new digital tax lien under the current tax framework. on corporate income. The Commission's proposal for a temporary digital tax resembles a "cookie" nexus concept (Internet cookie) that does not constitute the "traditional" type of physical presence test as defined in the standard tax treaties. OECD. The proposed tax will not be a transaction-by-transaction tax, but rather calculated by the aggregated online gross revenues of the company that reach the defined thresholds. The Commission would seek an international agreement on a permanent tax plan through an update of the OECD tax convention model. Once an agreement has been reached on long-term tax rules, the short-term measures will cease to apply.

To minimize tax burdens, the Commission could introduce a simplification mechanism based on a one-stop shop model for the declaration and collection of tax at the EU level

] Blockchain applications to fiscal administration

"Blockchain is, without a doubt, one of the most promising technologies for the tax administration because of its ability to provide reliable tax information in time real, not only by changing the relationship between taxpayers and tax authorities, but also by changing the terms and conditions of tax registration or filing and storage of information, particularly at the international level. "Summitto, a start-up Dutch company developing a system of value added tax (VAT) Blockchain.

"The potential for digitization of taxes has been noticed by EU countries, some of which have adopted the standard audit file for the tax as a way to file tax returns electronically. EU countries are looking for ways to improve VAT collection because it is the biggest contribution to government budgets. Currently, the EU VAT system loses 50 billion euros a year in case of missing trader fraud, through which fraudulent companies collect VAT that they never pay back to the government. If the transactions were recorded on a distributed ledger, the tax authorities can know for sure how much VAT is due, which reduces the risk of fraud. In addition, global registration can facilitate the use of invoices by businesses for other financial services, "says Sint Nicolaas.

In the United States, after the Internal Revenue Service (IRS) released LibraTax, a Blockchain startup located in New York, began developing accounting software and Tax Based on Cryptocurrency and Blockchain

"LibraTax tracks crypto activity and establishes a cost base for calculating capital gains.It automatically synchronizes stock trading, blockchain wallet transactions and cryptocurrency, establishes the cost base values ​​for Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, Monero, Zcash and generates reports on acquisitions, assignments, balances, fiscal batches, for the purpose of US tax form 8949 " , said Jeremy Drane, commercial director of LibraTax.

LibraTax is available to taxpayers for free in 2018, the software can be useful to the 13,000 customers of Coinbase who were informed of the impending transfer of transaction data from 2013 to 2015 to the IRS.

Another Blockchain Accounting Platform Developing Tax-Based Tax Systems Balanc3, the New York-based ConsenSys development studio, is a crypto for ICOs.

The accounting system covers more than taxation such as financial reporting, accounting, invoice tracking, payroll management and portfolio analysis. Griffin Anderson, founder of Balanc3, explains that the Balanc3 platform allows users to track cryptocurrency / token transfers and compile real-time financial reports that translate this data in formats well understood by accountants, regulators, and creditors. 39; IRS. The developer plans to make the product available to customers, including exchanges and crypto funds, later this year.

Anderson adds that "The Balanc3 team is also behind the Coalition Blockchain Accounting, which is the reference group .Determine the tax treatment of cryptocurrencies.They address issues such as the taxation of forks, paratroopers and similar exchanges. "

Blockchain technologies and unprecedented global transparency laws help accelerate changes in how businesses manage taxes. for governments, businesses and individuals will be very different in the future.

The opinions and interpretations in this article are those of the author and do not necessarily represent those of Cointelegraph

[1945904] Selva Ozelli, Esq., CPA is an international tax expert and CPA who writes frequently on tax, legal and accounting matters for TaxNotes, Bloomberg. BNA, other publications and OECD.