NEW DELHI: Brazil, Russia, India, China and South Africa (BRICS), have 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 BRICS saw the five countries pledge support other developing nations to increase their tax administrations' capacity and implement the Organisation for Economic Co-operation and Development (OECD)/G20 standard on Automatic Exchange of Information (AEOI). They also extended their continued support to all international initiatives towards reaching a globally fair and universally transparent tax system.
A statement released after the meeting acknowledged: "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," adding that automatic exchange will begin by 2018
They also urged for a 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.
Expressing "deep concern" over the 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.
The meet will also discuss improving compliance through non-intrusive means, issues arising in implementation of BEPS action point 13 relating to Country by Country reporting and the role of U.N. in becoming the voice of developing and emerging economies.