Mumbai, Dec 6 (IANS) The BRICS countries on Tuesday reiterated the pledge for automatic exchange of information and adoption of global standards on transparency to prevent cross-border tax evasion.
“We are constantly progressing towards enhancing the transparency of our tax systems. In this regard, we reiterate our endorsement for the global Common Reporting Standard for the Automatic Exchange of Information on a reciprocal basis,” a joint statement from BRICS said.
The statement was issued at the end of a two-day meeting here of the BRICS (Brazil, Russia, India, China and South Africa) heads of revenue and experts on tax matters.
The BRICS countries confirmed they would implement the Common Reporting Standard and begin exchanging information automatically with one another by 2018 at the latest, it said.
“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,” it added.
The meeting saw discussions among BRICS experts on tax matters on contemporary and relevant topics, such as sharing of best practices in BRICS countries on improving compliance through non-intrusive means.
They also discussed progress and issues arising out of implementation of base erosion and profit shifting (BEPS) and capacity building of developing countries.
“We remain deeply concerned with the process of erosion of the tax base by aggressive tax practices, including incomplete disclosure of information, and reaffirm our resolve to work together to address these concerns,” the statement said.
“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 added.