G20 Summit: India stresses on information sharing to check tax evasion, illicit funds flow

Tax evasion and other illicit financial flows still pose considerable challenges

Achieving a greater transparency in taxation is high on agenda at the G20 summit as tax evasion and other illicit financial flows pose considerable challenges and these, according to a top finance ministry official, can be checked with exchange of information.

“Without exchange of information, it is difficult to put a stop to tax evasion and illicit flow of funds... We will deliberate on illicit financial flows across countries at the fourth high-level meeting of the Asia Initiative of the Global Forum,” Revenue Secretary Sanjay Malhotra said on Thursday.

India, as the co-chair of the Asia Initiative of the Global Forum on transparency and exchange of information for tax purposes, is hosting the fourth high-level meet on April 27 and 28 in New Delhi. Indonesia is the other co-chair of the Asia Initiative.

Seventeen Asian jurisdictions are members of the Asia Initiative. The meeting will deliberate upon major issues and challenges concerning exchange of information and tax transparency, particularly in the context of the Asian region, to arrive at effective solutions and chart the way forward.

The Global Forum is working on the implementation of international standards on tax transparency and exchange of information around the world. Globally, 167 jurisdictions are members of the Forum, including all G20 countries.

“India’s active engagement with the Global Forum helps in the fight against offshore tax evasion and tax avoidance,” the finance ministry said in a statement.

The Global Forum decided to launch a regional initiative for Asian members towards the end of 2021 to enhance tax cooperation and to fight illicit financial flows to sustain recovery and mobilise domestic resources. The Asia Initiative aims at promoting the regional dynamics and the tax transparency agenda to achieve the full potential of exchange of information for the region, it said.