Manila: The Philippines will implement a framework on crypto-assets to combat cross-border tax evasion and illicit financial flows, the Department of Finance (DOF) said.
According to Philippines News Agency, the DOF announced that the Philippines committed to execute the Crypto-Asset Reporting Framework (CARF) by 2028 during the 8th Asia Initiative Meeting in Mal©, Maldives. The CARF institutionalizes the framework for reporting and automatic exchange of information related to crypto-assets between tax authorities for tax compliance purposes. The Philippines now joins 67 other jurisdictions already committed to implementing the CARF by 2027 or 2028, including 10 in Asia.
Finance Secretary Ralph Recto emphasized the need for faster and stronger systems for collaboration to beat tax evasion and illicit transactions. He highlighted the importance of ensuring that crypto-asset users pay their fair share of taxes and that no illicit financial activity goes unpunished.
During the Asia Initiative meeting, the DOF also shared the country's experience in adopting the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), a comprehensive multilateral instrument for administrative cooperation between signatories in the assessment and collection of taxes.
In its commitment to greater tax transparency, the DOF briefed participants on the administrative reforms implemented to strengthen the exchange of information (EOI) on request, the steps taken to prepare for the Enhanced Monitoring Process, and the efforts made to adopt the Common Reporting Standards. The meeting also launched the 2025 Tax Transparency in Asia Report, which outlines the progress made by Asian jurisdictions in implementing and effectively using the tax transparency standards throughout 2024.
The Philippines joined the Asia Initiative in 2023, aimed at promoting the implementation of internationally agreed-upon standards on transparency and EOI, as well as the use of these tax transparency standards to tackle tax evasion and other illicit financial flows. The DOF stated that adhering to these tax transparency standards is crucial, given that at least EUR24 billion in additional revenue from 2009 to 2024 has been identified through EOI requests, offshore investigations, Automatic Exchange of Financial Account Information (AEOI), and related voluntary disclosure programs. In 2024 alone, at least EUR1.9 billion has been identified through EOI requests (EUR1.7 billion) and AEOI (EUR200 million).
