The European Parliament has voted for a more coordinated and fair system of crypto taxation and for the use of blockchain technology in enabling a more agile approach to mitigating cases of tax evasion.
Over 80% of the members of the European Parliament voted for the resolution
The resolution drawn up by MEP Lídia Pereira was well received in the house of the EU Parliament.
More than 80% of the members of the European Parliament (MEP) voted for the resolution. In the notice dated October 4, the European Parliament pointed out that out of 705 MEPs, only 7 voted against the resolution, 47 were absent, and 566 voted for it.
The resolution provides a definitive answer to the area of taxation when it comes to the cryptocurrency industry in EU countries. He notes that cryptocurrencies should be subject to a fair and transparent taxation system.
In addition, the resolution takes into account small investors and transactions. According to the statement of the EU Parliament, this category of traders should receive slightly less harsh taxes. In order to ensure the implementation of this part of the resolution, the European Commission has been tasked with evaluating the nature of crypto taxation in countries across the EU.
In addition, it will assess the measures implemented by each member state to ensure the reduction of tax evasion.
The resolution will use blockchain to fight tax evasion
The resolution also seeks to establish a generally accepted idea of what a crypto asset is.
In addition, efforts are being made to define which assets are generally accepted as taxable. This will help alleviate ambiguity in definitions between EU countries. In addition to calling for a more efficient tax system for cryptocurrencies, the resolution also seeks to integrate blockchain solutions into tax programs that fight tax evasion.
The European Parliament's statement acknowledged the potential effectiveness of blockchain in controlling 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.
[...] Work must be undertaken to identify the best practices of using technology to improve the analytical capacity of tax administrations”. Blockchain's unique features could offer a new way to automate tax collection, limit corruption, and better identify ownership of tangible and intangible assets, enabling better taxation of mobile taxpayers.
Tax evasion remains a threat that several countries are trying to combat, and it has particularly thrived in the cryptocurrency sector.