Finance minister Nirmala Sitharaman Tuesday called for increased international cooperation to tackle emerging challenges in tax transparency with digitalisation of the economy, emergence of new financial products and evolving structures of beneficial ownership.
Speaking at the 18th Global Forum Plenary Meeting, she said countries globally will have to cooperate with timely exchange of information among jurisdictions to handle challenges like cryptocurrency.
The minister also underscored the importance of integrating exchanged information with broader analyses of compliance and risk, leveraging technology and artificial intelligence to make sense of information in a timely and efficient manner with positive outcomes.
"Looking ahead, there are new challenges that call for joint attention-the digitalisation of the economy, the emergence of new financial products and evolving structures of beneficial ownership require continued cooperation between jurisdictions," Sitharaman said, adding that they demand coordination, trust and timely exchange of relevant information. "These are not challenges that any one country can address alone," she said.
Giving India's example, she said fairness and predictability in tax administration encourage participation more effectively than compulsion and transparency in tax matters is also a foundation for sustainable development and fiscal resilience for developing countries. "Fairness and predictability, when demonstrated in practice, encourage participation far more effectively than compulsion. That lesson, we believe, holds relevance beyond national borders," she added.
Speaking at the plenary meeting, revenue secretary Arvind Shrivastava said countries need to work towards ensuring strong data confidentiality systems and also make sure that information shared under international standards is used effectively.
He said jurisdictions, globally, must also adapt to new challenges, including digital economy taxation and crypto asset reporting frameworks, which will need technical innovation and coordinated action.
"Looking ahead... we must continue to deepen beneficial ownership transparency, ensure strong data confidentiality systems and make sure that information shared under international standards is used effectively," the secretary said.
The Global Forum on Transparency and Exchange of Information for Tax Purposes is a multilateral framework comprising 170 jurisdictions.
Speaking at the 18th Global Forum Plenary Meeting, she said countries globally will have to cooperate with timely exchange of information among jurisdictions to handle challenges like cryptocurrency.
The minister also underscored the importance of integrating exchanged information with broader analyses of compliance and risk, leveraging technology and artificial intelligence to make sense of information in a timely and efficient manner with positive outcomes.
"Looking ahead, there are new challenges that call for joint attention-the digitalisation of the economy, the emergence of new financial products and evolving structures of beneficial ownership require continued cooperation between jurisdictions," Sitharaman said, adding that they demand coordination, trust and timely exchange of relevant information. "These are not challenges that any one country can address alone," she said.
Giving India's example, she said fairness and predictability in tax administration encourage participation more effectively than compulsion and transparency in tax matters is also a foundation for sustainable development and fiscal resilience for developing countries. "Fairness and predictability, when demonstrated in practice, encourage participation far more effectively than compulsion. That lesson, we believe, holds relevance beyond national borders," she added.
Speaking at the plenary meeting, revenue secretary Arvind Shrivastava said countries need to work towards ensuring strong data confidentiality systems and also make sure that information shared under international standards is used effectively.
He said jurisdictions, globally, must also adapt to new challenges, including digital economy taxation and crypto asset reporting frameworks, which will need technical innovation and coordinated action.
"Looking ahead... we must continue to deepen beneficial ownership transparency, ensure strong data confidentiality systems and make sure that information shared under international standards is used effectively," the secretary said.
The Global Forum on Transparency and Exchange of Information for Tax Purposes is a multilateral framework comprising 170 jurisdictions.
