Recommendation 17

HMRC and HM Treasury said that they have not seen any evidence of tax avoidance so far, for example by changing business models, as businesses have not regarded it as worth their while. But they assured us that they are aware of the risks and that anomalies would be investigated.54 Neither has HMRC found any evidence of tax evasion, which it told us is not unexpected given the profile of the major players in this type of business.55 Crypto assets are within scope for the Digital Services Tax. They are a rapidly developing area with little regulation. HMRC told us that it is one of the first tax authorities to produce comprehensive guidance on crypto assets and that the multilateral nature of Pillars One and Two will make compliance work on crypto transactions more straightforward.56