South Africa Becomes the Sole African Nation to Adopt Crypto-Asset Reporting Framework South Africa has joined more than
40 other countries and jurisdictions in agreeing to implement the so-called
Crypto-Asset Reporting Framework (CARF), a statement issued by the country’s tax collector has said.
According to a joint statement unveiled by His Majesty’s (HM) Treasury on
Nov. 10, the agreement provides a basis for the
“automatic exchange of information between tax authorities on crypto exchanges.” The goal of such an exchange is to combat offshore tax avoidance and evasion.
Meanwhile, in a statement explaining why South Africa has agreed to implement the CARF,
the South African Revenue Service (SARS) argued that this is the only way the African country can keep up with developments.
The revenue collector also argued that when widely and consistently implemented, the crypto reporting framework will improve its
“ability to ensure tax compliance and clamp down on tax evasion.” The SARS press statement revealed that the revenue collector is planning on
“transposing the CARF into domestic law” by 2027. However, any such switch to CARF will be subject to national legislative procedures, the statement added.
