The effort by Brics countries to find common ground on international taxation is significant at a time when tax-related rules are being renegotiated around the world, finance minister Nirmala Sitharaman said.
Under India’s chairship, Brics established two working groups — one on International Taxation and Transfer Pricing, and the other on Revenue Statistics. It also marked the in-person capacity-building programme for young tax professionals and the advancement of the Brics women in tax network. It also promoted the Brics Tax Support Network, the Brics Tax Cross-Learning Lab, and the Brics Tax Collaboration Tool. In this context, Sitharaman highlighted three focus areas of the Brics tax track this year: “Technology: The use of data and digital infrastructure to make tax administration more precise, more accessible and less dependent on the discretionary power of individuals. Administration: The governance structures, the shared standards, the practical tools that give a cooperation like ours a durable institutional shape. People: The investment in the men, women and the young of our institutions and in the relationships between the individuals who carry them forward. She informed that the Wednesday meeting will look at the scoping documents for two new working groups — one on international taxation and transfer pricing, and the other on revenue statistics.
“Brics economies as source jurisdictions, as large developing economies, as countries that have built significant domestic tax capacity from a low base, have a perspective on those negotiations and that is essential to their fairness and their durability,” she said. The finance minister said India has shared its experiences such as faceless assessment, pre-filled returns, real-time invoice authentication, and AI-enabled taxpayer assistance with Brics partners through the Brics tax collaboration tool. Speaking at the Brics tax heads meeting in New Delhi on Wednesday, the finance minister said the grouping’s decisions will play a significant role in multilateral tax negotiations.
“I’m proud of what this cooperation has built. I’m grateful to each of your governments for the seriousness,” she added.
It is meant to build on what has been achieved so far and what can be the foundation that the next chair inherits,” she said. “What we decide upon today is not the purpose of India’s chairship.
