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According to the Minister of Finance of India, cryptocurrencies should be included in the automatic exchange of information between national tax authorities.
India’s Finance Minister Nirmala Sitharaman said during the G20 Ministerial Symposium on Taxes and Development in Bali that tax transparency is an area where significant progress has been made through the automatic exchange of financial account information (AEOI). According to the Ministry of Finance of India, the system is useful in cases where attackers create multi-layered schemes from shell organizations to hide unaccounted assets.
The international automatic exchange of financial account information is a new way of interaction between national tax authorities, introduced in 2014, which is carried out in accordance with the Common Reporting Standard (CRS). It was developed by the Organization for Economic Cooperation and Development.
According to Sitharaman, the system has proved to be extremely effective and proved that it is able to track the movement of money between countries and investments in non-financial assets.
“While the crypto asset reporting system is being developed, I urge the G20 to explore the possibility of automatically exchanging information regarding other non-financial assets besides those subject to the CRS, such as real estate,” says Sithamaran.
According to the Minister of Finance of India, cryptocurrencies should also be included in this system, as they are increasingly becoming a haven for tax evaders and a convenient tool for financial fraud. Also, sitharaman says, it would help fight terrorist financing and money laundering.
Earlier, the Internet and Mobile Association of India IAMAI announced the dissolution of the BACC Blockchain and Crypto Assets Council, which worked for the cryptocurrency industry for five years.
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