Finance Minister of India, Nirmala Sitharaman has tuned to the G20 nations to include cryptocurrency within the ‘Automatic Exchange of Information’ framework. Over 100 nations have adopted the Common Reporting Standard under the framework. The finance minister discussed crypto during the G20 Ministerial Symposium on Tax and Development in Bali, Indonesia on Friday.
What does the finance minister have to say in this regard?
Highlighting that ‘tax transparency’ is an area where ‘significant progress has been achieved with the Automatic Exchange of Information in regards to financial accounts’, she described that their investigations have represented that various layers of entities are usually set up by tax evaders to hide their unaccounted assets.
Shed some more light on it
She further added that although the Automatic Exchange of Information system offers financial account information to several jurisdictions, tax evaders, being smart, explore other avenues to transfer their unaccounted wealth via investment in non-financial assets. Highlighting that this area is a point of action for the G20, Sitharaman explained that while the development of the cryptocurrency asset reporting system is underway, she turns to G20 to analyze the feasibility of an Automatic Exchange of Information regarding other non-financial assets apart from those covered under the CRS such as immovable properties also.
What does the Automatic Exchange of Information aim to do?
The Automatic Exchange of Information tends to decrease global tax evasion. The Common Reporting Standard (CRS) is an information standard for the Automatic Exchange of Information. It was created in response to a G20 request and approved by the Organization for Economic Co-operation and Development (OECD) Council in July 2014.