Just-In: European Parliament Votes For Crypto Tax System

The European Parliament has voted in favour of a more coordinated and fair taxation system for cryptocurrencies, and to utilize blockchain technology in facilitating a more robust approach towards mitigating instances of tax evasion.

Over 80% Members of the European Parliament vote in favor of resolution

The resolution which was drafted by MEP Lídia Pereira saw a favorable reception from the house, as over 80% of the Members of the European Parliament (MEPs) voted in its favor. Out of the 705 MEPs, only 7 voted against the resolution, with 47 absent, and 566 voting in favor of it.

The European Parliament revealed the development through a press release Tuesday. The resolution makes a definite response to the area of taxation when it concerns the cryptocurrency industry across EU states. It notes that cryptocurrencies should be subjected to a fair and transparent taxing system.

Additionally, the resolution makes a consideration for small investors and transactions. According to the press release, this category of traders should receive a slightly less harsh tax imposition.

As a means to ensure the implementation of this part of the resolution, the European Commission has received a charge. The Commission is to evaluate the nature of crypto taxations in countries across the EU. In addition, it will assess the measures employed by each member state in ensuring the mitigation of tax evasion.

The resolution will leverage blockchain in the fight against tax evasion

Furthermore, the resolution also looks to establish a generally-accepted idea of what crypto assets are. Additionally, it seeks to define which assets are universally accepted to be taxable. This will help palliate ambiguity in definitions amongst EU states.

In addition to calling for a more efficient tax system for cryptocurrencies, the resolution is also looking to leverage blockchain in the fight against tax evasion. The European Parliament press release acknowledged the potential effectiveness of blockchain in checking tax evasion.

Blockchain’s unique features could offer a new way to automate tax collection, limit corruption and better identify ownership of tangible and intangible assets allowing for better taxing mobile taxpayers,

the resolution argues.

Tax evasion remains a menace several countries are attempting to combat. In the cryptocurrency sector, most especially, it has thrived, due to the infancy of the industry. Last month, the U.S. DoJ issued an order to the IRS to go after certain crypto tax evaders.