New Zealand is implementing the Crypto-Asset Reporting Framework (CARF), which was developed by the Organisation for Economic Co-operation and Development (OECD).
“Through CARF and annual exchanges of information with other tax authorities, Inland Revenue will also receive information on transactions and transfers of crypto-assets that take place overseas by New Zealand tax residents.
“Overall, the CARF initiative brings much-needed visibility to the crypto world, shifting from being a vague grey area to international transparency with much tighter enforcement.”
Inland Revenue said the letter is an opportunity for people who received income from disposing of crypto-assets (including when they are sold, swapped or exchanged) to review their tax position and correct any errors by filing an Individual income tax return (IR3).
“Despite popular thinking – people are not invisible on blockchain, and we have the tools and the analytics capabilities to identify and expose crypto-asset activities,” Inland Revenue said.