Brisbane,As India
makes attempts to recover black money from abroad, Prime Minister Narendra Modi
today asked every country, especially tax havens, to provide information for
tax purposes in accordance with treaty obligations.
Raising
the pitch on the black money issue, Modi in his intervention at the summit of
the Group of 20 industrialised and major emerging economies called for close
global coordination to address the challenge posed by it.
Modi
voiced India’s support for a new global standard on automatic exchange of tax
information, saying it would be instrumental in getting information relating to
unaccounted money hoarded abroad and enable its eventual repatriation.
He also
extended India’s backing for all initiatives to facilitate exchange of
information and mutual assistance in tax policy and administration. The prime
minister made the remarks at the plenary session on the subject of “Delivering
Global Economic resilience” on the second and final day of the summit held at
the Brisbane Exhibition and Convention centre. He also expressed the hope that
Base Erosion and Profit Sharing (BEPS) system would fully address concerns of
developing and developed economies.
BEPS is a technical term
referring to the effect of tax avoidance strategies used by multinational
companies on countries’ tax basis. BEPS is known more commonly as “Transfer
pricing” This term is used in a project headed by the OECD that is said to be
an attempt by the world’s major economies to try to rewrite the rules on
corporate taxation to address the widespread perception that the corporations
don’t pay their fair share of taxes.
The prime miniser also said
that increased mobility of capital and technology have created new
opportunities for avoiding tax and profit shifting.
Modi
underpinned the need for the world community to take coordinated decisions
although each country has its domestic priority.
“Need
for policy coordination among major economies remains strong,” he said. “Close
coordination is imporant not just for addressing the challenge of black money
but also security issues like terrorism, drug trafficking and arms smuggling,”
he said.
Touching upon the resilience of
the financial system in the world, Modi said it will also depend on cyber
security. Modi also proposed to the G20 to set up a global virtual centre for
clean energy research and development. The Group of Twenty (also known as the
G-20 or G20) is an international forum for the governments and central bank
governors from 20 major economies.
The members are Argentina,
Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy,
Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United
Kingdom, United States and the European Union (EU). The EU is represented by
the European Commission and by the European Central Bank.
Collectively,
the G-20 economies account for around 85 per cent of the GDP, 80 per cent of
world trade (or, if excluding EU intra-trade, 75 per cent), and two-thirds of
the world population. The G-20 heads of government or heads of state have
periodically conferred at summits since their initial meeting in 2008 in the
US. G20 host and Australian Prime Minister Tony Abbott has vowed a crackdown on
tax evasion by MNCs and wanted the G20 countries to have intense cooperation in
this regard. (Source- www.newsroompost.com)
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