New Delhi: The five BRICS (Brazil, Russia, India, China and South Africa) countries have indentified seven areas of tax policy and tax administration for cooperation.
A joint communique issued at the end of a two-day meeting of the BRICS heads of revenue departments said the cooperation would cover areas such as developing international standards on international taxation and transfer pricing keeping in view the aspiration of developing countries, especially the BRICS countries.
India's Finance Minister P. Chidambaram while inaugurating the meet Thursday had urged BRICS to be proactive in modifying current standards on international taxation and transfer pricing to safeguard their tax revenue interests.
The other areas of cooperation are strengthening the enforcement processes, sharing of best practices and capacity building, sharing of anti-avoidance and non-compliance practices and promotion of effective exchange of information.
This was the first meeting of the BRICS heads of revenue. In their communique, they expressed concern of BRICS countries at the erosion of the tax base by practices that involve abuse of tax treaty benefits, incomplete disclosure of information and fraudulent claims, and made a commitment to address these concerns through mutual cooperation.
BRICS heads of revenue discussed issues of mutual concern in tax administration including those relating to international taxation, transfer pricing, cross border tax evasion and avoidance, and tax dispute resolution mechanisms.