The G20 should examine the feasibility of bringing non-financial assets like crypto in the ambit of automatic exchange of information to check tax evasion, says India’s Finance Minister Nirmala Sitharaman.
She highlighted investigations showing numerous layers of entities setting up tax evaders to conceal their unaccounted assets. This is despite the automatic exchange of information framework providing financial account information to various jurisdictions. The minister, at the G20 Ministerial Symposium on Tax and Development in Bali, said tax evaders are smart. They are always exploring avenues to shift their unaccounted wealth through investment in non-financial assets.
Sitharaman called upon the G20 to examine the feasibility of the automatic exchange of information in respect of other non-financial assets beyond those covered under the Common Reporting Standards (CRS) like immovable properties. The Indian minister made a strong case for global regulation of cryptocurrencies to tackle the risks of money laundering and terror funding. She believes the G20 can play the role of a catalyst in encouraging the jurisdictions to become part of the Automatic Exchange of Information. This mechanism can strengthen global efforts against offshore tax evasion and avoidance.
In regards to tax transparency, Sitharaman said progress has been made with the automatic exchange of information for financial accounts. She shared that more than 100 countries have committed to exchanging financial account information under the CRS.