The G20 summit has emphasized the importance of achieving greater transparency in taxation, particularly in light of the significant challenges posed by tax evasion and other forms of illicit financial flows. At the forefront of these efforts is the Global Forum on transparency and exchange of information for tax purposes. India is one of the co-chairs of the Asia Initiative of the Global Forum and is hosting its fourth high-level meeting in New Delhi on April 27-28 to discuss the exchange of information and tax transparency issues in the Asian region.
The Asia Initiative aims to promote regional dynamics and the tax transparency agenda to achieve the full potential of the exchange of information for the region. With 17 member jurisdictions, the Asia Initiative meeting will focus on identifying effective solutions and charting the way forward to address significant issues and challenges related to the exchange of information and tax transparency.
India’s Proactive Involvement with the Global Forum
The exchange of information is key to combating tax evasion and illicit financial flows. Sanjay Malhotra, the Revenue Secretary, believes that “Stopping tax evasion and illicit funds flow is challenging without exchanging information. At the fourth high-level meeting of the Asia Initiative of the Global Forum, we will discuss illicit financial flows across countries.” The Global Forum has played an instrumental role in promoting transparency and the exchange of information to combat tax evasion and other forms of illicit financial flows.
The Global Forum is committed to promoting and implementing international standards on tax transparency and the exchange of information worldwide. Its membership comprises 167 jurisdictions globally, including all G20 countries. The Forum’s initiatives have helped promote cooperation and transparency in the fight against tax evasion and other illicit financial flows. The Global Forum’s primary objective has been to establish a universal standard for the automatic exchange of financial account information between tax authorities. This standard is aimed at promoting greater tax transparency and preventing tax evasion and other forms of illicit financial flows.
India has been actively involved with the Global Forum to combat offshore tax evasion and tax avoidance. According to a statement by the finance ministry, India’s proactive engagement with the Global Forum has helped in this regard. In addition, the Global Forum decided to launch a regional initiative for Asian members at the end of 2021 to enhance tax cooperation and fight illicit financial flows to sustain recovery and mobilize domestic resources.
A Strategy for Combating Tax Evasion and Illicit Financial Flows
The Asia Initiative seeks to promote regional cooperation and the tax transparency agenda to achieve the full potential of the exchange of information for the region. Through this initiative, the Global Forum aims to enhance cooperation and exchange of information among Asian jurisdictions to combat these issues effectively. The initiative will play a crucial role in promoting transparency and the exchange of information in the Asian region to combat tax evasion and other forms of illicit financial flows.
In conclusion, the fourth high-level meeting of the Asia Initiative of the Global Forum on transparency and exchange of information for tax purposes is an important platform for addressing the exchange of information and tax transparency issues in the Asian region. India’s active engagement with the Global Forum has helped combat offshore tax evasion and tax avoidance, and the Global Forum’s initiatives have played a crucial role in promoting transparency and exchange of information to combat tax evasion and other forms of illicit financial flows. Through the Asia Initiative, the Global Forum aims to enhance cooperation and exchange of information among Asian jurisdictions to combat these issues effectively.
