The Heads of Revenue of the BRICS
countries, namely the Federative Republic of Brazil, the Russian Federation,
the Republic of India, the People’s Republic of China and the Republic of South
Africa held a meeting on 5th & 6th December, 2016 in
Mumbai to discuss the potential areas of cooperation and exchange opinions and
views based on their existing commitment to openness, solidarity, equality,
mutual understanding, inclusiveness and mutually beneficial cooperation.
The Meeting saw discussions amongst
BRICS Experts on Tax matters on contemporary and relevant topics such as
sharing of best practices in BRICS countries on improving compliance through
non-intrusive means, progress and issues arising-out of implementation of BEPS
Action Point 13 relating to Country by Country reporting and also the role of
United Nations in becoming the voice of developing and emerging economies in
setting international tax rules.
The Heads of Revenue also issued a Joint
Communiqué at the end of the Meeting that expressed their continued support to
all international initiatives towards reaching a globally fair and universally
transparent tax system. They reiterated their commitment to actions taken to
ensure the fairness of the international tax system particularly towards
prevention of base erosion and shifting of profits, exchange of tax information
and capacity building of developing countries.
Following is the text of
the Communiqué of BRICS Heads of Revenue Meeting issued in
Mumbai today.
“We, the heads of Revenue of the
Federative Republic of Brazil, the Russian Federation, the Republic of India,
the People’s Republic of China and the Republic of South Africa held a meeting
on December5th and 6th, 2016 in
Mumbai to discuss the potential areas of cooperation and exchange opinions and
views based on our existing commitment to openness, solidarity, equality,
mutual understanding, inclusiveness and mutually beneficial cooperation, as
stated in the Goa Declaration issued on October 16, 2016.
We will continue our support to all
international initiatives towards reaching a globally fair and universally
transparent tax system. In this regard we reiterate our commitment to the
actions taken to ensure the fairness of the international tax system particularly
towards prevention of base erosion and shifting of profits, exchange of tax
information and capacity building of developing countries.
In accordance with the above, we
conducted the meeting with the primary objective of promoting international tax
cooperation and exchanging relevant knowledge and experience in these areas.
Combating Base Erosion and Profit Shifting
We remain deeply concerned withthe process
of erosion of the tax base by aggressive tax practices including incomplete
disclosure of information, and reaffirm our resolve to work together to address
these concerns.
We acknowledge our common understanding
that profits should be taxed in those jurisdictions where the activities
deriving those profits are performed and where value is created.
In this regard we welcome the measures
outlined in the various action points of the Base Erosion and Profit Shifting
(BEPS) Project. We urge the timely and consistent implementation of the Base
Erosion and Profit Shifting Project across as many tax jurisdictions as
possible. We welcome the establishment of the Inclusive Framework on BEPS and
appeal to all countries to join the framework and participate in the BEPS
project at an equal footing. We also support monitoring of the global
implementation of the project, the four minimum standards in particular.
We reaffirm our commitment to keep
exchanging valuable experience and share best practices in combating base
erosion and profit shifting. We are aware of the challenges thrown by cross
border activities and once again reaffirm our commitment to support such
international initiatives aimed at intensifying international cooperation
and enhancing
tax
transparency. In this regard we agree to regularly exchange relevant
information concerning the BEPS Action Plan and to keep working towards a
common approach to these issues.
Implementing the Automatic Exchange of
Information
We are constantly progressing towards
enhancing the transparency of our tax systems. In this regard we reiterate our
endorsement for the global Common Reporting Standard for the Automatic Exchange
of Information on a reciprocal basis. We recognize the importance of the
exchange of information between competent authorities in preventing
cross-border tax evasion and we resolve to exchange information, both on
request and on automatic basis and to adopt global standards on tax
transparency.
We confirm our previously agreed
commitment to implement the Common Reporting Standard and begin exchanging
information automatically with each other by 2018 at the latest. We call upon
those countries that have not yet signed and ratified the Multilateral
Convention on Mutual Administrative Assistance in Tax Matters to do so. We
welcome the proposal made for the development of objective criteria to identify
non-cooperative tax jurisdictions with respect to tax transparency.
We reaffirm our resolve to cooperate
closely to tackle any potential challenges, both domestically and
internationally, that may delay the implementation of the CRS.
Extending the reach of tax cooperation and
building capacity
We are convinced that effective tackling
of issues of the international tax agenda calls for global involvement of as
many countries as possible. In this regard we welcome the Inclusive Framework
encouraging deeper engagement of developing countries in the international tax
cooperation.
We commit to work closely with each other and
also with developing countries to facilitate and deepen their involvement in
the BEPS project as well as to share best practices in international tax
cooperation.
We endorse the efforts made by the
international community to provide appropriate technical assistance to those
countries in overcoming challenges of combating tax evasion. We also reaffirm
our resolve to support developing countries in increasing their tax administrations’
capacity in implementation of the Automatic Exchange of Information.
International Tax Cooperation
We reaffirm our continued commitment to
promote closer cooperation on issues of mutual concern and common interest.
We recognize the importance of the
economic and commercial links between Brazil, Russia, India, China and South
Africa and the need for us to contribute to the strengthening of these links.
We will continue to work towards developing a framework of cooperation between
our administrations to contribute to the economic growth of the BRICS
countries.”
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DSM/KA