Latest news with #Crypto-AssetReportingFramework
Time of India
5 days ago
- Business
- Time of India
CBDT to Employ Tech to Tighten Tax Evasion Net
Live Events The Central Board of Direct Taxes ( CBDT ) aims to step up its crackdown on evasion through the greater use of data analytics and artificial intelligence (AI) to identify discrepancies in the reporting of income, chairman Ravi Agrawal said in an interview. This is in preparation for the new income tax law that's set to be approved by the Parliament in the current access to over 6.5 billion domestic digital transactions and the exchange of information with overseas agencies, the Income Tax Department is poised to detect evasion more effectively, Agrawal allayed concerns over powers that tax authorities have to access digital records. This is strictly restricted to search and seizure operations where taxpayers refuse to share information, and are not aimed at snooping on ordinary taxpayers, he said.'The next phase of AI usage would be more intense, with reporting agencies providing more mature data for carrying out detailed analytics to identify evaders and hit the right targets,' he Income Tax Department was proactively providing taxpayers with information about their financial transactions to encourage voluntary compliance. As many as 11 million updated returns have been filed, resulting in an additional tax mop-up of more than ₹11,000 crore, with the rollout of this facility since April 1, 2022.A recent nudge campaign led to withdrawal of tax deduction claims worth ₹963 crore, and the payment of ₹409.50 crore additional taxes between April 1, 2023, and June 18, 2025. A total of 30,161 taxpayers declared ₹29,208 crore of foreign assets and foreign income of ₹1,089 crore between November 2024 and March 31, 2025.'This was the result of analytics,' Agrawal said. 'We were able to carry out a pan-India operation.'The clear message from the tax authorities is that the department is non-intrusive and a facilitator but is keeping watch, said the CBDT chairman. A similar campaign will be rolled out this year using fresh data sets, he noted that the data received under various information exchange agreements had improved over the past two years. 'The quality of information has improved because they have also understood our requirements and it is helping us identify taxpayers that hold foreign assets,' he said. There is an emphasis on regular updates, as technology evolves to tackle areas such as the dark web, crypto and other new forms of said India is 'actively participating and contributing' to discussions at global forums on the Crypto-Asset Reporting Framework. 'India's voice in all these platforms is being heard. We are deliberating as to how best we can actually exchange information,' he said, adding that the country had already enabled this through CBDT chairman said digitisation has helped expand the taxpayer base to 90 million in FY25, from 30 million in showed that gross refunds issued increased by 474% — from Rs 83,008 crore in FY14 to Rs 4.76 lakh crore in FY25 — with the average refund processing time dropping to 17 days, from 93 22% of income tax returns were processed within a day, and 26% in two to seven department is collating annual data on about 6.5 billion transactions to prepare pre-filled forms for about 400 million taxpayers, with 99% of them agreeing with the information provided. 'As a country we should appreciate the background effort in pre-population of ITRs, which is prompting taxpayers towards compliance,' he the Parliament select committee submitting a report on the new income tax bill, the real work for the department starts now. 'The bill is the first step, and associated with this will be rules, forms and capacity building,' said Agrawal. 'This is a transition for the I-T Department, as well as for taxpayers.'The immediate focus would be to gear up the department for the massive transformation expected, with the new law that takes effect April 1, next phase of AI usage would be more intense, with reporting agencies providing more mature data for carrying out detailed analytics to identify evaders.
Economic Times
5 days ago
- Business
- Economic Times
CBDT to ramp up AI-led crackdown on tax evasion ahead of new income tax law: Chairman Ravi Agrawal
IANS CBDT chairman Ravi Agrawal New Delhi: The Central Board of Direct Taxes (CBDT) aims to step up its crackdown on evasion through the greater use of data analytics and artificial intelligence (AI) to identify discrepancies in the reporting of income, chairman Ravi Agrawal said in an interview. This is in preparation for the new income tax law that's set to be approved by the Parliament in the current session. With access to over 6.5 billion domestic digital transactions and the exchange of information with overseas agencies, the Income Tax Department is poised to detect evasion more effectively, Agrawal said. He allayed concerns over powers that tax authorities have to access digital records. This is strictly restricted to search and seizure operations where taxpayers refuse to share information, and are not aimed at snooping on ordinary taxpayers, he said."The next phase of AI usage would be more intense, with reporting agencies providing more mature data for carrying out detailed analytics to identify evaders and hit the right targets," he Income Tax Department was proactively providing taxpayers with information about their financial transactions to encourage voluntary compliance. As many as 11 million updated returns have been filed, resulting in an additional tax mop-up of more than ₹11,000 crore, with the rollout of this facility since April 1, 2022. A recent nudge campaign led to withdrawal of tax deduction claims worth ₹963 crore, and the payment of ₹409.50 crore additional taxes between April 1, 2023, and June 18, 2025. A total of 30,161 taxpayers declared ₹29,208 crore of foreign assets and foreign income of ₹1,089 crore between November 2024 and March 31, 2025.'This was the result of analytics,' Agrawal said. 'We were able to carry out a pan-India operation.'The clear message from the tax authorities is that the department is non-intrusive and a facilitator but is keeping watch, said the CBDT chairman. A similar campaign will be rolled out this year using fresh data sets, he noted that the data received under various information exchange agreements had improved over the past two years. 'The quality of information has improved because they have also understood our requirements and it is helping us identify taxpayers that hold foreign assets,' he said. There is an emphasis on regular updates, as technology evolves to tackle areas such as the dark web, crypto and other new forms of said India is 'actively participating and contributing' to discussions at global forums on the Crypto-Asset Reporting Framework. 'India's voice in all these platforms is being heard. We are deliberating as to how best we can actually exchange information,' he said, adding that the country had already enabled this through regulation. The CBDT chairman said digitisation has helped expand the taxpayer base to 90 million in FY25, from 30 million in FY14. Data showed that gross refunds issued increased by 474% — from Rs 83,008 crore in FY14 to Rs 4.76 lakh crore in FY25 — with the average refund processing time dropping to 17 days, from 93 22% of income tax returns were processed within a day, and 26% in two to seven department is collating annual data on about 6.5 billion transactions to prepare pre-filled forms for about 400 million taxpayers, with 99% of them agreeing with the information provided. 'As a country we should appreciate the background effort in pre-population of ITRs, which is prompting taxpayers towards compliance,' he said. With the Parliament select committee submitting a report on the new income tax bill, the real work for the department starts now. 'The bill is the first step, and associated with this will be rules, forms and capacity building,' said Agrawal. 'This is a transition for the I-T Department, as well as for taxpayers.' The immediate focus would be to gear up the department for the massive transformation expected, with the new law that takes effect April 1, 2026.
Yahoo
6 days ago
- Business
- Yahoo
Tokenized Stocks Expose a Major Tax Reporting Gap in Crypto—Robin Singh
Global crypto tax reporting still has major cracks — and tokenized stocks may be the catalyst that forces the system to catch up. In recent weeks, platforms like Robinhood and Gemini have started offering tokenized stocks to users in the European Union. These blockchain-based derivatives mimic the price of real equities like Apple and Tesla and allow users to trade 24/7, free from the limitations of traditional market hours. That might sound like a leap forward for accessibility and innovation. But if these products continue to gain traction, and firms like Galaxy Digital believe they will siphon liquidity from traditional exchanges, regulators will face growing pressure to close the reporting gap between crypto platforms and traditional brokers. Despite the progress the crypto industry has made over the years, crypto tax reporting is still far behind compared to traditional asset exchanges in many parts of the world. There is still an obvious gap. Take Australia. The Australian Stock Exchange (ASX) provides the tax office with structured data, including sale prices, dates, and proceeds, which is automatically pre-filled into users' returns. For crypto, the ATO's approach is more like a gentle tap on the shoulder to its taxpayers. It presents a notification reminding users to check for taxable events, rather than a detailed pre-filled report. While the ATO knows you are active in crypto because crypto exchanges report you have an account, it does not have the same comprehensive oversight as it does with stock trading. That approach may have been justifiable in crypto's early days, when most activity was tied to speculative tokens or NFTs. But now, with platforms likely wanting to expand their offerings of tokenized stocks globally — which are not yet available in Australia but I dare say it is being considered — the lack of tax transparency becomes much harder to justify. Governments can't afford to let potential tax revenue slip through the cracks simply because they're happening onchain. I believe as tokenized stocks start to gain more and more attention over the coming months, regulators will be scrambling to ensure they are prepared. In the U.S., the IRS is already attempting to catch up. Its new crypto reporting rules, including the long-awaited Form 1099-DA, are set to take effect in 2026. These will require crypto brokers to report user transactions similar to traditional financial institutions. Meanwhile, Robinhood is reportedly preparing to launch tokenized stocks for U.S. customers. It raises a timely question…will that rollout coincide with the new IRS requirements? On a global scale, the OECD's Crypto-Asset Reporting Framework (CARF), also due in 2026, will enforce transaction data sharing across jurisdictions, similar to how banks comply with the Common Reporting Standard. If tokenized stocks are going to mimic real equities then the tax data reporting around them needs to match accordingly. The days of crypto existing in a regulatory gray zone are numbered. Whether platforms are ready or not, the era of full tax transparency is coming and tokenized stocks may be the turning point that forces it into reality. I believe that moment will arrive within the next five years. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
19-07-2025
- Business
- Economic Times
Strengthening India's tax sovereignty in the age of crypto: The case for Swift CARF implementation
As India deepens its digital transformation, it is essential that its tax and regulatory systems evolve in step with innovation. The emergence of crypto-assets, while presenting novel economic opportunities, has also revealed vulnerabilities in the nation's capacity to monitor cross-border transactions and ensure tax compliance. The government's recent decision to align with the global Crypto-Asset Reporting Framework (CARF) is not only timely but also crucial for safeguarding India's fiscal sovereignty and fostering a fair and accountable financial system. ADVERTISEMENT A significant outcome of India's G20 Presidency was the unanimous endorsement of CARF by G20 member nations, as reflected in the New Delhi Leaders' Declaration. The declaration advocated for the swift and coordinated implementation of CARF, recognizing its importance in enhancing tax transparency and combating offshore tax evasion. CARF, developed by the Organisation for Economic Co-operation and Development (OECD) in collaboration with G20 countries, aims to integrate crypto-assets into the framework of automatic tax information exchange between jurisdictions—mirroring the established success of the Common Reporting Standard (CRS) for traditional financial accounts. India is among the 52 designated 'relevant jurisdictions' that have committed to implementing CARF by the year 2027. In furtherance of this commitment, the Finance Bill 2025 proposes a new section—285BAA— under the Income Tax Act. This proposed section mandates designated reporting entities to furnish comprehensive information regarding crypto-asset transactions. This provision is slated to take effect from April 1, 2026, providing India with sufficient time to develop the necessary institutional mechanisms for participating in the global exchange of tax-relevant crypto-asset data. This issue transcends mere abstract policy considerations. A recent report in The Economic Times underscored how traders in India are utilizing offshore platforms, such as Binance, to circumvent the 1% Tax Deducted at Source (TDS) obligation, with these platforms currently under scrutiny by the Income Tax Department. Such regulatory defiance undermines the nation's fiscal discipline, distorts fair market competition, and exposes investors to unmitigated risks. This situation clearly indicates that crypto-asset transactions must be transparent, traceable, and subject to taxation under Indian provides the requisite legal and technical infrastructure to dispel the notion that offshore platforms can operate beyond the purview of Indian regulations. It mandates that crypto-asset service providers, particularly those serving users across international borders, must collect and report detailed identification and transaction data. This information will subsequently be shared with the tax authorities in the users' country of residence. For Indian users, this implies that their foreign crypto-asset activities will no longer remain undisclosed to Indian tax government's proactive stance on strengthening compliance obligations within the Virtual Digital Asset (VDA) ecosystem is a commendable measure. It is now imperative to equip enforcement agencies with robust monitoring infrastructure and, where necessary, restrict access to non-compliant platforms. Any entity ADVERTISEMENT seeking to serve Indian users must operate within the established framework of Indian regulations. The privilege of benefiting from India's markets entails a corresponding responsibility to adhere to its India progresses toward the implementation of CARF, the primary focus must now shift to effective execution through the promulgation of clear rules, the establishment of technological readiness, and the rigorous enforcement of regulations. This juncture presents an opportunity to institutionalize transparency within a domain that has long been characterized by opacity. ADVERTISEMENT (The author Shri G M Harish Balayogi, is Honourable MP from Amalapuram Lok Sabha Seat (18th Lok Sabha) and TDP Parliamentary Whip) (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
GMA Network
18-06-2025
- Business
- GMA Network
PH to implement crypto-assets reporting framework
The Department of Finance (DOF) on Wednesday said the Philippines is committing to implement a framework on reporting crypto-assets in a bid to combat cross-border tax evasion and illicit financial flows. In a statement, the DOF said the commitment to execute the Crypto-Asset Reporting Framework (CARF) by 2028 was signified by DOF Revenue Operations Group Undersecretary Charlito Martin Mendoza during the 8th Asia Initiative Meeting in Malé, Maldives held from May 26 to 29, 2025. The CARF institutionalizes the framework for the reporting and automatic exchange of information in relation to crypto-assets between tax authorities for tax compliance purposes. The Philippines now joins 67 other jurisdictions already committed to implementing the CARF by 2027 or 2028. 'We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions. This is a timely commitment as digital currency becomes one of the preferred means for transactions,' said Finance Secretary Ralph Recto. 'The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished,' added Recto. —VAL, GMA Integrated News
