G20 Endorses India's Stance On Black Money

BRISBANE: In a major gain for India, the G20 summit endorsed the government's line on the need for transparency and disclosure of tax information as Prime Minister Narendra Modi voiced support for a new global standard on automatic exchange to tackle the black money issue.

Raising the pitch on the black money issue, Modi in his intervention at the summit of the Group of 20 industrialized and major emerging economies called for close global coordination to address the challenge posed by it.

The new standard will be instrumental in getting information relating to unaccounted money hoarded abroad and enable its eventual repatriation, Modi said, utilizing the forum of G20, which accounts for 85 percent of world's GDP. Modi while voicing India's support for it urged every jurisdiction, especially tax havens, to provide information for tax purposes in accordance with treaty obligations.

He also extended India's backing for all initiatives to facilitate exchange of information and mutual assistance in tax policy and administration. The prime minister while flagging his concern over cross border tax avoidance and evasion also noted that increased mobility of capital and technology have created new opportunities for avoiding tax and profit sharing. The Prime Minister made the remarks at the plenary session on the subject of "Delivering Global Economic resilience" on the second and final day of the summit held at the Brisbane Exhibition and Convention centre. He also expressed the hope that Base Erosion and Profit Sharing (BEPS) system would fully address concerns of developing and developed economies.

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