FM flags global tax risks from digitisation, new financial products

At Global Forum, India urges stronger transparency, confidentiality systems to tackle evolving financial structures

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Global tax systems must urgently adapt to digitalisation, new financial products, and evolving beneficial-ownership structures, Finance Minister Nirmala Sitharaman said on Tuesday, calling for deeper cooperation and stronger confidentiality systems among jurisdictions.

 

She said this while explaining that although transparency and technology have strengthened India’s compliance systems, new risks from digitalisation, complex financial products and beneficial-ownership structures require collective global cooperation, strong confidentiality protections, and responsible use of shared information.

 

Speaking at the 18th Global Forum Plenary meeting on Transparency and Exchange of Information for Tax Purposes in New Delhi, she stressed that these emerging challenges “are not challenges that any one country can address alone” and require “coordination, trust, and timely exchange of relevant information.”

 

Sitharaman said that trust is the foundation of the Global Forum’s work, noting that trusted relationships have direct economic value by making cooperation easier, improving investment flows and stabilising economic ties. She emphasised that the Forum plays a critical role in reviewing implementation, developing standards, and supporting members, demonstrating that transparency can be “effective and fair” when guided by clear rules, mutual respect and shared objectives.

 

She underlined that the task ahead is to strengthen standards where necessary and ensure that information exchange leads to measurable outcomes — not only for enforcement but also for boosting confidence in institutions and encouraging responsible economic behaviour. “The focus must remain on fairness, sustainability, and public trust in the integrity of tax systems,” she said.

 

Within India, she noted, the exchange of information is now integrated into broader compliance and risk analysis frameworks. As technology and artificial intelligence enhance analytical capacity, Sitharaman cautioned that “innovation must always work hand-in-hand with accountability,” adding that judgment and respect for procedure are essential to maintaining credibility.

 

Reinforcing the same themes, Revenue Secretary Arvind Shrivastava said the global tax community faces a set of “clear and urgent” tasks. “We must continue to deepen beneficial-ownership transparency, ensure strong data confidentiality systems, and make sure that information shared under international standards is used effectively,” he said.

 

Shrivastava highlighted the need to adapt to digital economy taxation and new crypto-asset reporting frameworks, noting that these shifts will require both technical innovation and coordinated international action.

 

He added that India stands ready to contribute to the Forum’s next phase, one where transparency “leads not just to enforcement, but also to greater compliance, investor confidence and sustainable development.”

 

OECD Secretary-General Mathias Cormann said the Forum’s next phase will focus on crypto-asset transparency, stronger implementation of information-exchange standards and expanded capacity building. He noted that the global crypto market has surged to about $3 trillion from $740 billion in 2020, creating new risks, and said “over 70 jurisdictions have now committed to start first exchanges on crypto-assets from 2027 onwards.” Updated technical guidance covering the amended Common Reporting Standard and the Crypto-asset Reporting Framework was published in June to support implementation, he informed. 

 

Cormann added that peer reviews show continued challenges in the quality and timeliness of information exchange, underscoring the need for improvements in processes and procedures. He also highlighted the Forum’s growing technical assistance footprint, with support extended to 106 jurisdictions and training provided to more than 15,000 officials in 2025.