BRICS nations, including India, on Tuesday pledged to share tax information automatically and adopt global standards on tax transparency to check cross border tax evasion.
The two-day meeting of the heads of Revenue of Brazil, Russia, India, China and South Africa (BRICS) also resolved to support other developing nations in increasing their tax administrations’ capacity to implement the OECD/G20 standard on Automatic Exchange of Information (AEOI).
“We recognise the importance of the exchange of information between competent authorities in preventing cross-border tax evasion and we resolve to exchange information, both on request and on automatic basis, and to adopt global standards on tax transparency,” said the communiqué issued after the meeting.
Expressing “deep concern” with the process of erosion of the tax base by aggressive tax practices including incomplete disclosure of information by MNCs, the group reaffirmed its resolve to work together to address them.
“We acknowledge our common understanding that profits should be taxed in those jurisdictions where the activities deriving those profits are performed and where value is created,” it said.
They urged timely and consistent implementation of the Base Erosion and Profit Shifting Project across as many tax jurisdictions as possible and appealed to all countries to join the framework and participate in the BEPS project.
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