‘Ensure MNCs do not evade tax’
Union Secretary for Economic Relations Amar Sinha on Sunday said a mutually acceptable mechanism among BRICS nations was needed to be worked out to ensure that the MNCs did not evade taxes.
Addressing a press conference on the sidelines of the BRICS summit which ended here on Sunday, Mr. Sinha called for norms to curb black money and bring to book those accused of corruption and tax evasion.
He said the issue of tax evasion, black money and corruption were the other key issues the BRICS countries were pursuing for mutual benefit.
“Under the complex international tax architecture, there are companies, especially multi-national companies and others, which have a presence across borders, they end up paying no taxes anywhere and they shift their profits,” said the official.
Mr. Singh said it had been agreed upon by BRICS leaders that taxation should happen at the point where the activity took place, not where the MNCs’ registered headquarters were or where their main subsidiary was or the holding company was.