Hong Kong launches CARF cryptocurrency tax consultation to combat tax evasion

Hong Kong stated in a press release on Tuesday that it is seeking opinions on the implementation of CARF and the modification of tax reporting standards. This move is clearly related to the local government's efforts to combat cross-border tax evasion. Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, stated that the adoption of CARF will demonstrate the government's "commitment to promoting international tax cooperation and combating cross-border tax evasion."

In addition to CARF, Hong Kong is also seeking opinions on the adoption of the Common Reporting Standard (CRS). Both CARF and CRS are initiatives of the Organisation for Economic Co-operation and Development (OECD) aimed at standardizing various aspects of international tax reporting. Currently, CARF has been widely adopted globally. The latest list maintained by the OECD shows that 48 countries have committed to adopting CARF by 2027, 27 countries have committed to adopting it by 2028, and the United States has committed to adopting it by 2029.