Jaitley calls for automatic exchange of information to prevent international tax evasion

To prevent international tax evasion and avoidance, Union Finance Minister Arun Jaitley has made a strong pitch for countries to implement Common Reporting Standards (CRS) on automatic exchange of information.

Jaitley, in his intervention during the 49th Annual Commonwealth Finance Ministers Meeting here, welcomed the efforts of Organisation for Economic Co-operation and Development (OECD) in areas of Base Erosion and Profit Shifting (BEPS) project and automatic exchange of information which have important implications for Commonwealth nations.

The OECD/G20 -BEPS Project provides governments with solutions for closing the gaps in existing international rules that allow corporate profits to 'disappear' or be artificially shifted to low or no tax environments, where little or no economic activity takes place.

Jaitley noted that India has been a beneficiary of these systems by getting vital information on tax evasion and emphasised the need for genuine and equitable multilateralism in deciding global norms and standards on taxation. The meeting of Commonwealth finance ministers also focused on issues relating to infrastructure financing and small states trade financing facility.

Jaitley is on an official tour to Peru to attend the annual meetings of the International Monetary Fund and the World Bank as well as other associated meetings.