BRICS: India pitches for mechanism against black money

BRICS countries also pitched for a stronger global commitment for combating corruption.

Written by Shubhajit Roy | Benaulim (goa) | Updated: October 17, 2016 3:23 pm
brics, brics goa summit, goa brics summit, brics goa declaration, corruption brics, brics corruption, india news, indian express A security personnel stands guard outside one of the venues of BRICS (Brazil, Russia, India, China and South Africa) Summit, in Benaulim in the western state of Goa. (Source: Reuters)

India on Sunday said that a mutually acceptable mechanism among BRICS nations needs to be worked out to ensure that MNCs do not dodge taxes, along with norms to curb black money and bring those accused of corruption and tax evasion to justice.

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The Ministry of External Affairs’ secretary (economic relations), Amar Sinha said: “A key issue that we are pushing, is the issue of tax evasion, black money and corruption. Tax evasion, because under the complex international tax architecture, there are companies especially MNCs and others which have a presence across borders, they end up paying no tax anywhere and they shift their profits.”

“So one of the key ideas is that the taxation and the BRICS leaders have agreed, that the taxation should happen at the point where the activity takes place, not where perhaps their registered headquarters are or where their main subsidiary is or the holding company is. That is one way of sort of evading taxes and there are companies which are not paying taxes anywhere,” he said.

Sinha also said that there was need for mutually agreeable norms to bring to book white collar criminals who cross international borders to avoid action.

“Both, people who are needed for corruption or white collar crimes or tax evasion have fled. They have to be brought back and along with that the assets that is parked in safe havens, needs to be brought back. So tax evasion, black money and people who are needed in corrupt cases, etc, are key decision of the BRICS leaders and develop norms which could be accepted by others,” he said.

The BRICS countries on Sunday pitched for a stronger global commitment for combating corruption and repatriation of black money in overseas jurisdictions, saying these along with aggressive tax practices hurt equitable development and economic growth. “We will strive to coordinate our approach… and encourage a stronger global commitment to prevent and combat corruption on the basis of the United Nations Convention against Corruption and other relevant international legal instruments,” said the Goa declaration.