The resolution was favorably accepted by the house, with more than 80% of Members of the European Parliament (MEPs) voting in favor of it. The European Parliament made the announcement in a press release on Tuesday.
taxation system for cryptocurrencies.
In addition, blockchain technology will be used to facilitate a more rigorous approach to minimizing instances of tax evasion.
The resolution was favorably accepted by the house, with more than 80% of Members of the European Parliament (MEPs) voting in favor of it. Only seven of the 705 MEPs voted against the resolution, with 47 absent and 566 voting in favor.
The European Parliament made the announcement in a press release on Tuesday. The resolution addresses the issue of taxes in the cryptocurrency industry across EU member states. It states that cryptocurrencies should be taxed fairly and publicly.
Furthermore, the resolution takes small investors and transactions into account. According to the press release, this category of traders would face slightly less harsh tax burden.
The European Commission has been tasked with ensuring that this aspect of the resolution is carried out. The nature of crypto taxes in EU member states will be assessed by the Commission. Furthermore, it will assess each member state's efforts to minimize tax evasion.
The resolution would use blockchain technology to combat tax evasion
Furthermore, the resolution seeks to establish a widely accepted definition of crypto assets. Additionally, it aims to define which assets are uniformly recognized as taxable. This will assist to reduce uncertainty in terminology across EU member states.
The resolution proposes to use blockchain to combat tax evasion in addition to lobbying for a more efficient tax structure for cryptocurrencies. The European Parliament acknowledged the potential usefulness of blockchain in combatting tax evasion in a press release.
According to the resolution, blockchain's unique features might give a new approach to automate tax collection, minimize corruption, and better identify ownership of tangible and intangible assets, allowing for better taxing of mobile taxpayers.
COINGABBAR VIEWS: Tax evasion is still a problem that many governments are attempting to address. Because of the industry's immaturity, it has thrived in the cryptocurrency sector in particular. Last month, the US Department of Justice authorized the IRS to investigate Cryptocurrency tax evaders.
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