G20: Modi pushes for coordination to tackle black money

Prime Minister Narendra Modi Sunday made a strong pitch for repatriation of black money by using the G20 platform to urge the need for close coordination among countries to address the challenge of black money and pushed for global standards on automatic exchange of information.

Addressing a G-20 session titled, "Delivering Global Economic Resilience", the prime minister said: "Close coordination is important not just for addressing the challenge of black money but also security issues like terrorism, drug trafficking, arms smuggling," according to tweets posted by the external affairs ministry.

"We support new global standard on automatic exchange of information. It would be instrumental in getting information of unaccounted money hoarded abroad and enable its eventual repatriation," he said.

"I support all initiatives to facilitate exchange of information and mutual assistance in tax policy and administration," he said in his intervention on issues of tax evasion at G-20 Summit.

He said the "need for policy coordination among major economies remains strong".

"Although we each have our domestic priorities, coordinated decisions may help us all in the long run -- increased mobility of capital and technology have created new opportunities for avoiding tax and profit shifting."

"Urge every jurisdiction, especially tax havens, to provide information for tax purposes in accordance with treaty obligations," Modi added.

"Hope Base Erosion and Profit Shifting (BEPS) system would fully address concerns of developing and developed economies."

"Resilience of our financial system will also depend on cyber security," the prime minister added, according to the tweets.

On Saturday, Modi had first raised the subject on the G20 platform by urging BRICS nations during an informal meeting on the need for close coordination between countries to repatriate unaccounted wealth.

Modi, in his closed door address to the leaders of Brazil, Russia, China and South Africa here Saturday had said that unaccounted money abroad posed both economic and security challenges and also proposed setting up of a digital hub for sharing of information.

The prime minister in his departure statement Nov 11 before leaving on his tour to Myanmar, Australia and Fiji had said that he would highlight the importance of global cooperation against black money at the G20, which kicked off here Saturday.