New Zealand Revenue Minister Proposes Adoption of OECD crypto Reporting Framework
New Zealand’s revenue minister, Simon Watts, recently recommended the integration of the OECD’s crypto-Asset Reporting Framework (CARF) into the country’s legislation. This move, proposed through the Taxation Bill, aims to enhance the reporting of financial information related to crypto-assets.
The proposed changes are scheduled to take effect on April 1, 2026. Following this implementation, crypto service providers in New Zealand will be obligated to collect transaction information from reportable users who conduct transactions through their platforms.
Penalties for Non-Compliance and Failure to Share Information
As part of the proposed legislation, service providers may face a fine of $300 for each instance of non-compliance, while users could be penalized up to $1,000 for failing to share the necessary information with the authorities.
Service providers are required to submit collected data to Inland Revenue by June 30, 2027. Subsequently, Inland Revenue will share this information with relevant tax authorities by Sept. 30, 2027, for further analysis and enforcement.
New Zealand's crypto Oversight Evolution
Recognizing the unique compliance challenges posed by crypto-assets, especially related to cryptography, tax authorities in New Zealand are adapting to enhance oversight in this emerging sector. This proactive approach reflects the evolving nature of financial transactions in the digital age.
Earlier this year, Andrew Bayly, New Zealand’s Minister of Commerce and Consumer Affairs, advocated for significant regulatory changes to better address digital asset activities and support the growing blockchain industry within the country. This renewed focus on oversight aims to strengthen compliance and transparency in the crypto realm.
Efforts to address tax avoidance and unreported crypto earnings are part of a broader initiative to streamline regulations and ensure fair taxation practices within the cryptocurrency space. By bolstering oversight and enforcement mechanisms, New Zealand is positioning itself as a forward-thinking player in the global crypto landscape.
