Research On International Tax Collection And Administration Of Cryptocurrencies

Nowadays,the development of cryptocurrency is making robust progress in the world.Various application scenarios emerge in an endless stream.The projects about the taxation of cryptocurrencies is also being undertaken in the international community.The research on the international tax revenue collection and administration of cryptocurrencies lies in the logic of making up the defects of the financial supervisory structure.Compared with the current restrictive or prohibitive legislation which may stifle technological innovation and financial market vitality,tax legislation is a more efficient incentive regulation means.Tax collection and administration have a positive effect on the guidance and standardization of the behaviors of market participants,the healthy and orderly development of the cryptocurrency market,and the improvement of other parts of the financial supervisory structure.Secondly,it is necessary to resolve the risk of cross-border liquidity.Technological innovation makes it difficult for traditional international tax rules to fully apply to all kinds of cryptocurrency transactions and has caused some practical problems in tax management,which calls for the international consensus on the cryptocurrency in its legal nature,taxation rules and the system construction of tax administration cooperation.In view of this,this paper takes the international tax collection and administration of cryptocurrencies as the theme of this research.Through sorting out the diversified tax collection and administration systems adopted by various countries and regions on cryptocurrencies,and the exploration of relevant international organizations to promote the unified tax rules and international tax administration cooperation,it points out the drawbacks faced by the current practice of international tax collection and administration of cryptocurrencies.And based on the in-depth analysis of the key causes of the dilemma mentioned above,it aims to put forward some beneficial suggestions for the establishment of international tax collection and administration system.First of all,this paper introduces the theoretical basis and regulatory status of the international tax administration of cryptocurrencies and related economic activities.International tax jurisdiction,tax system and approaches innovation of tax collection are the logical pivots for the construction of the international tax collection and management system of cryptocurrency.Secondly,various countries,regions and relevant international organizations have carried out exploration in application of cryptocurrency tax system,unified tax declaration standard and international cooperation of tax collection,which would be summarized in this paper.On this basis,this paper discusses the practical difficulties faced by the international tax collection and management of cryptocurrencies,and explore its causes.At present,the main obstacles is concentrated on the difficulty to curb cross-border tax evasion,the tax supervision vacuum and repeated supervision,as well as the complexity and expensiveness in tracking cross-border transaction information.The underlying cause of the above problems lies in that the digital characteristics of cryptocurrencies and its high anonymity,cross-border liquidity have blurred relevant information,such as business transactors,trading link capital source and destination,making it difficult to accurately identify the identity of tax residents,resulting in the weakness of physical criteria emphasized by traditional permanent establishment,and lacking in the evidence to confirm the place of consumption.This means the distribution rules of international tax jurisdiction need to be updated.Besides,the abscence of international consensus on the legal characterization of cryptocurrency causes differences in the application of tax systems,which can lead to confusion in tax collection and administration.In the meantime,the key way to resolve the tracking difficulties,which caused by high concealment during the cryptocurrencies transactions,is to improve the International tax transparency framework.Finally,this paper proposes some policy suggestions on the construction and improvement of the international tax collection and administration system,as well as the enlightenment of tax legislation and supervision in China.