FM Nirmala Sitharaman calls for sharing information on non-financial Assets

India on Thursday asked the G20 nations to examine the feasibility of an automatic exchange of information in respect of non-financial assets, beyond those covered under the Common Reporting Standard, like immovable properties and cryptos.

Speaking at the G20 Ministerial Tax Symposium, finance minister Nirmala Sitharaman said investigations carried out by India had revealed that tax evaders were shifting their unaccounted wealth through investment in non-financial assets.

“While the development of crypto asset reporting framework is underway, I call upon the G20 to examine feasibility of an automatic exchange of information in respect of other non-financial assets, beyond those covered under the CRS,” she said at the Symposium held at Bali, Indonesia.


Currently, the automatic exchange of information framework provides for sharing of financial account information. Sitharaman pointed out that while more than 100 countries had committed to exchanging financial account information under the CRS, some jurisdictions were yet to join the framework.

She said bringing more jurisdictions is needed for tax transparency and curb evasion. “It is for the G20 to play the role of a catalyst in encouraging jurisdictions to become part of the automatic exchange of information and this mechanism, because it can strengthen global efforts against offshore tax evasion and avoidance.”

INCLUDING DEVELOPING NATIONS
The FM said the global tax system must support and empower developing countries in their efforts to mobilise resources. “In executing the two-pillar solution, we must guard against any unintended consequences which may have an adverse impact for developing countries.” “I call on the G20 inclusive framework to support the active participation of all members, in the finalisation of the technical aspects of the two-pillar solution.