A Joint Communique was issued at the conclusion of the two-day BRICS meeting of Revenue heads and Tax experts at Mumbai, India.
The meeting was held from 5-6 December 2016 with the primary objective of discussing potential areas of cooperation in tax matters and to initiate an exchange of ideas, opinions, relevant knowledge and experience regarding the same.
It was attended by the Revenue heads of all BRICS countries including Brazil, Russia, India, China and South Africa.
All heads vowed to continue their support to all actions and international initiatives taken towards achieving a universally transparent tax system.
They also reasserted their commitment towards actions taken to ensure fairness of the same system, especially in the case of prevention of base erosion, shifting of profits, and exchange of tax information and capacity building of the developing countries.
Combating Base Erosion and Profit Shifting
- The leaders expressed extra concern on the process of erosion of the tax base due to aggressive tax practices including incomplete disclosure of information and committed to eliminate the concern by working in solidarity with each other.
- They also acknowledged that profits should be taxed in those regions where activities, which are leading to their origin in the first place, are being performed.
- They welcomed the measures mentioned in the action points of the Base Erosion and Profit Shifting (BEPS) Project and urged timely implementation of the project across as many jurisdictions as possible.
- They reaffirmed their commitment towards exchanging ideas and sharing best practices that would help in preventing base erosion and profit shifting.
Implementing the Automatic Exchange of Information
- They reaffirmed their support for the global Common Reporting Standard for automatic exchange of information and set 2018 as the deadline for its implementation.
- They also acknowledged the importance of the exchange of information between authorities in order to prevent cross-border tax evasion.
Extending the reach of tax cooperation and building capacity
- The leaders acknowledged the fact that issues of the international tax agenda can only be effectively resolved when many more countries join in.
- For the same, they are aiming to create an inclusive framework that would encourage other developing nations also to engage in the international tax cooperation.
- Apart from this, they also showed firm support towards efforts made by the international community to provide assistance to the developing nations in overcoming the challenges that come with fighting tax evasion.
International Tax Cooperation
- The heads jointly declared their continued commitment towards the promotion of closer cooperation on issues of mutual concern and interest.
- They also recognised the importance of the economic and commercial links that are established between the BRICS nations and spoke about the need to strengthen these links further.
- Lastly, the leaders reaffirmed their commitment to work towards the creation of a framework of cooperation between the administrations of the BRICS nations in order to contribute to their further economic growth.