The Ministry of Revenue of New Zealand has introduced a new bill aimed at implementing the crypto reporting framework developed by the OECD. The bill was introduced on August 26, 2024, and will come into force on April 1, 2026.
New Taxation Bill
The Ministry of Revenue introduced a taxation bill to implement the crypto-reporting framework created by the Organisation for Economic Cooperation and Development (OECD). The bill was presented by Hon Simon Watts on August 26, 2024. The proposals will take effect from April 1, 2026, with the first reports due by June 30, 2027.
Penalties for Non-Compliance with CARF
The bill incorporates the CARF proposal into New Zealand law. The OECD developed the Common Reporting Standard to gather and exchange financial account information. The implementation of the Crypto-asset Reporting framework (CARF) is for automatically exchanging financial information regarding crypto assets. New civil penalties will be introduced to support CARF, similar to those in New Zealand’s Tax Administration Act 1994. Non-compliance could result in fines ranging from $12,000 to $62,000, applying to crypto-asset service providers and their users.
CBDC in New Zealand
The Reserve Bank of New Zealand has released a consultation paper to gather public and expert opinions on the idea of creating a Central Bank Digital Currency (CBDC). This CBDC would be private and secure, functioning as a digital form of the country's official currency, directly issued by the central bank. The paper discusses potential benefits and challenges of issuing a CBDC in New Zealand, such as improving financial inclusion, enhancing the payments system, and supporting monetary policy.
New Zealand's taxation bill aims to implement crypto-reporting frameworks starting in 2026. The Reserve Bank of New Zealand is considering creating a central bank digital currency to improve the country's financial system.
Comments