India wants that BRICS adopts a categorical approach in dealing with cross border financial crimes

Tax authorities of the BRICS countries held their meet through video conferencing on Friday and shared respective members’ measures taken to overcome challenges thrown by the Covid-19 pandemic. They also discussed about tax challenges posed by digitalization and exchange of information.

India, represented by Finance Secretary Dr Ajay Bhushan Pandey at the meet, talked about steps taken to mitigate the effect of the pandemic on the taxpayers including deferment of compliance requirements, reduced rate of interest on delayed payments and reduction in withholding tax rates.

He urged the BRICS nations to share COVID-19 related tax measures taken by respective tax administrations from time to time so that it enhances our understanding of the fiscal and economic impact of the pandemic and encourages us to further evaluate various possibilities in assisting our government’s efforts in containing the spread and recovering from the impact of the pandemic.

The Finance Secretary, while extending India’s support to the ongoing work in OECD and G-20 project on addressing tax challenges posed by digitalisation, underlined the need to ensure that the new tax rules are fair and simple.

It should also be flexible enough to cover new and emerging business models, he said while highlighting the need for adopting a “Whole of Government Approach” in dealing with cross-border financial crimes as they have ramifications in respect of various statutes, not only taxation.

He, therefore, requested the BRICS countries to agree for wider sharing of information exchanged under tax treaties for countering corruption, money laundering and terrorist financing.