Tax reporting information

    Client data disclosure under the Automatic Exchange of Information (AEOI) and Crypto-Asset Reporting Framework (CARF)

    Information under the Law on Administrative Cooperation in Tax Matters (Law 205(I)/2012, as amended) and Article 5 of the EU DAC and Law 205(I)/2012.

    What is the AEOI?

    The AEOI is a standard process developed by the Organisation for Economic Cooperation and Development (“OECD”) for tax authorities to receive and exchange financial account information for non-resident individuals in order to improve tax transparency and thus prevent tax evasion. Detailed Information can be found at this link: http://www.oecd.org/tax/transparency/what-we-do/.

    What is the CARF?

    The CARF is an international standard established by the OECD to provide tax authorities worldwide with uniform information on crypto-asset transactions. CARF enables the automatic exchange of tax-related data, aiming to increase tax transparency and prevent evasion linked to cryptocurrencies and other digital assets.

    CARF requires Taurus to collect, verify, and report comprehensive details in relation to their clients’ crypto holdings and transaction activities to authorities. Detailed information can be found at this link: http://www.oecd.org/tax/transparency/crypto-asset-reporting-framework/.

    What is the role of Taurus?

    Taurus (Europe) Ltd (“Taurus”) is a reporting financial institution based in the Republic of Cyprus under the Law on Administrative Cooperation in Tax Matters (Law 205(I)/2012, as amended) on the International Automatic Exchange of Information in Tax Matters (“AEOI Act”) and a reporting crypto-asset service provider (RCASP) under CARF. Therefore, Taurus is obligated to determine the residence(s) for tax purposes of its clients, as well as to document and, as the case may be, to report specific data to the Cyprus Tax Department (“CTD”).

    Who is affected by the AEOI and/or CARF?

    Reportable Persons (natural persons and legal entities such as corporations, partnerships, foundations, trusts and their relevant transactions) who are tax residents of countries linked to the Republic of Cyprus by a dedicated agreement. Also affected are natural persons with a corresponding tax residence who as controlling person (namely shareholders, beneficial owners, settlors, beneficiaries, etc.) exercise control over an entity considered to be a passive Non-Financial Entity (“NFE”).

    No exchange takes place within the Republic of Cyprus. Thus, Taurus will not forward any data of its Cypriot resident account holders to the CTD. In the case of accounts held by legal entities or trusts, reporting may also take place under certain conditions if a controlling person is resident in a partner state.

    How and with whom is the data exchanged?

    Taurus reports the relevant data to the CTD. The CTD then forwards this information to the respective tax authorities of the reportable persons. The CTD exchanges the data with states that have signed an agreement with the Republic of Cyprus.

    A list of the AEOI and CARF partner states can be found at these links:

    What is the permissible use of this information?

    The partner states use the information received for tax purposes only. In principle, it is not allowed for the AEOI and/or the CARF partner state to forward the information to another country. Also, the information is to be handled confidentially.

    What information will be reported under the AEOI and/or the CARF?

    According to the AEOI and/or the CARF requirements, Taurus is obliged to report identification, account and transactions information about reportable persons to the CTD each year.

    The following information is sent:

    • Name
    • Address
    • Tax resident state(s)
    • Tax identification number(s) (“TIN”)
    • Date of birth (only for natural persons)
    • Type of account holder (only for entities)
    • Type of controlling person (only for entities)
    • Account number(s) and name of the financial institution
    • Total gross amount of interest, dividends and other income generated by the assets
    • Total gross proceeds from the sale or redemption of assets
    • Total account balance of the relevant year
    • Transaction-level details such as the type of transaction, value of crypto-assets exchanged or transferred, timestamps, wallet addresses, and fiat currency conversion rates where applicable
    • Aggregate amounts of relevant transactions

    Cyprus does not apply a minimum reporting threshold under CARF; it requires disclosure of all crypto-asset transactions regardless of size. This comprehensive reporting supports tax compliance monitoring and is submitted in a standardized electronic format for automatic exchange with partner countries.

    If an account has been closed, the values accrued to the closing date and the fact of the closure will be reported.

    What are the rights of the reportable persons?

    In accordance with the AEOI, the CARF, and the General Data Protection Regulation (“GDPR”), persons obliged to provide information have the following rights:

    • The right to be informed;
    • The right to access;
    • The right to rectification;
    • The right to erasure (the right to be forgotten);
    • The right to restrict processing;
    • The right to data portability;
    • The right to object;
    • The right related to automated decision-making.

    Under Article 146 of the Constitution of Cyprus, both individuals and organizations have the right to appeal to the Supreme Court for any administrative decisions that affect their legitimate interests. Additionally, Law 158(I)/1999 sets out clear rules on how administrative bodies must operate fairly and lawfully while offering people a means to seek justice if their rights are infringed. These protections apply to CARF reporting, which involves submitting crypto-asset data to the CTD. If you have concerns about your data or its processing, you can challenge the CTD’s decisions legally.

    Cyprus also follows the EU General Data Protection Regulation (GDPR), which gives you rights like accessing, correcting, or objecting to your personal data related to CARF reporting.

    The Administrative Court is central to upholding these protections in Cyprus. It evaluates whether administrative actions comply with the law and has the power to annul any action found to be unlawful, lacking legal basis, or unfair.

    Important note

    It should be noted that the information to be collected and reported hereunder does not constitute a tax base and may therefore differ from the respective tax-relevant information. In this context, Taurus advises that the client is responsible for compliance with all applicable laws with respect to the assets held or accounted for by Taurus for the client. Taurus further recommends that clients who are affected by the AEOI and/or the CARF clarify any tax issues with a specialist. In addition, the AEOI and/or the CARF reporting do not replace the tax declaration and reporting obligations of Taurus’ clients.

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