Affirming their continued commitment to promote closer coordination and cooperation in the area of tax administration, the Heads of the Revenue of the BRICS countries identified seven areas of tax policy and tax administration for extending their mutual cooperation.
This was contained in the Joint Communique issued here today at the end of the two-day meeting of the Heads of Revenue of BRICS countries.
This mutual cooperation includes contribution to development of international standards on International Taxation and Transfer Pricing taking into account the aspirations of developing countries in general and BRICS Countries in particular.
The other areas of cooperation are strengthening the enforcement processes, sharing of best practices and capacity building, sharing of anti-avoidance and non-compliance practices and promotion of effective exchange of information.
The communique expresses the concerns of BRICS Countries at the erosion of the tax base by practices that involve abuse of tax treaty benefits, incomplete disclosure of information and fraudulent claims and makes a commitment to address these concerns by preventing the base erosion and profit shifting through mutual cooperation.
The communique also expresses an agreement amongst BRICS Countries for working together towards capacity building, improvement of systems and sharing of resources, knowledge and best practices and emphasizes the spirit of cooperation and solidarity that underlies the BRICS partnership and aims at extending it to the area of tax administration in a way that will benefit the people of BRICS Countries.
The Heads of Revenue of BRICS Countries earlier met in New Delhi on Thursday and Friday and held discussions on issues relating to international taxation, transfer pricing, prevention of cross-border tax evasion and avoidance, exchange of information, sharing of best practices in tax system administration and resolution of disputes.
Finance Minister P. Chidambaram inaugurated the meeting on Thursday. The meeting concluded today.
This was the first meeting of the Heads of Revenue and on conclusion of the meeting, a joint communique was issued in which the Revenue Heads of BRICS countries agreed to develop greater cooperation among their tax administrations on various issues of mutual interest and concerns.
The communique recognizes the importance of the economic and commercial links amongst BRICS Countries and the need to contribute to the strengthening of these links. (ANI)