Jaitley bats for global implementation on a fully reciprocal automatic exchange of tax Information
Keen to put in place a system to prevent international tax evasion and avoidance, Finance Minister Arun Jaitley, in the Commonwealth finance ministers’ meeting has reiterated the need for global implementation on a fully reciprocal automatic exchange of tax Information under Common Reporting Standards.
Jaitley welcoming the final guidelines on Base Erosion and Profit Shifting (BEPS) issued by the Organisation for Economic Cooperation and Development (OECD), which has developed the common reporting standards, noted that India has been the beneficiary of these two systems by getting vital information on tax evasion
In an effort to bring transparency in international taxation norms for companies, recently the Paris-based OECD unveiled measures including country-by-country reporting, a framework to end treaty shopping and curbing harmful tax practices through automatic exchange of information. The deal will not only allow the countries to extract bank details for future, but upon request they could also avail account balance information of the past five to six years. India too signed the Convention on Mutual Administrative Assistance in Tax Matters under the Common Reporting Standard multilateral agreement to automatically exchange financial information in June this year.