Have you seen "CRS checks back 3 years, if you haven't received a text message, you're safe"? Be careful of being misled! Recently, interpretations about CRS and Crypto Assets have been very popular, but there are many traps in it.

Recently, I've seen a lot of discussions about CRS (Common Reporting Standard) and Crypto Assets. Some statements are very one-sided and even dangerous. As someone who pays attention to tax compliance, I think it's necessary to highlight some key points and avoid pitfalls:

1. CRS and CARF: Don't get them mixed up!

· Mainstream CRS currently primarily targets traditional financial assets. It is inaccurate to say that the Crypto Assets you hold in a private wallet have been reported under CRS.
· What you should really worry about is the newly introduced CARF by the OECD, a "SkyNet" specifically designed for Crypto Assets, expected to be rolled out globally by 2027, covering all compliant exchanges. Your transaction records will be transparently exchanged.

2. Is the "three-year retrospective" a universal amulet? Big mistake!

· The saying "If you haven't received a text message, congratulations, you're safe" is an extremely dangerous mindset of luck. "Looking back three years" is just a common time frame used by Chinese tax authorities in their current actions; if you are found to be maliciously evading taxes, the investigation period can be indefinitely extended. Don't gamble your future based on someone else's current situation.

3. The scariest thing is not the tax, but the "late fee".

· That's right! A late fee of 0.05% daily (annualized 18.25%) is a real "killer weapon". With compound interest, it is completely possible to exceed the principal amount of the tax.

⛔️ The most dangerous advice:

· "How to avoid CRS": Any method that teaches you not to declare or to falsely report tax numbers is not "planning", but illegal tax evasion, with consequences far more severe than paying back taxes (account freezing, fines, criminal liability).

💡 Correct practice:

Compliance is the only way out. Actively understand the regulations and declare truthfully.
· Received a tax notification? Don't trust online guides, consult a professional tax lawyer/accountant as soon as possible.

Tax issues are complex and serious. In an era of fragmented information, it is even more important to stay clear-headed. Don't let a single post lead you astray.