- Only 7 of the 705 MEPs were opposed to the resolution while 47 were missing.
- Small investors and transactions are also taken into account by the resolution.
The European Parliament has approved a plan to use blockchain technology to provide a more robust approach to minimizing instances of tax evasion, and to create a more coordinated and equitable taxation system for cryptocurrencies.
More than 80% of MEPs in the European Parliament voted in support of the motion authored by MEP Lidia Pereira. Only 7 of the 705 MEPs were opposed to the resolution, while 47 were missing and 566 were in favor.
Focusing on Tax Reduction and Evasion
On Tuesday, the European Parliament issued a press statement detailing the new development. The resolution provides an unambiguous answer to the question of taxes in the context of the crypto business across EU nations. It acknowledges the need for a clear and equitable taxation framework for digital currencies. A number of nations continue to fight the perilous problem of tax evasion.
Small investors and transactions are also taken into account by the resolution. The press release claims that these investors would see a moderate reduction in their tax burden.
The European Commission has been given responsibility for carrying out this provision of the resolution. The Commission will assess the kind of cryptocurrency taxes in each EU member state. Additionally, it will evaluate the methods used by each nation to reduce tax avoidance.
In addition, the resolution seeks to define crypto assets in a way that is approved by all parties. In addition, it attempts to specify which types of assets are generally recognized as liable for taxation. This will alleviate some of the confusion that exists within the EU about definitions.
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