BRISBANE, Nov 16 � In a major gain for India, the G20 summit today endorsed the government�s line on the need for transparency and disclosure of tax information as Prime Minister Narendra Modi voiced support for a new global standard on automatic exchange to tackle the black money issue, reports PTI.
Raising the pitch on the black money issue, Modi, in his intervention at the summit of the Group of 20 industrialised and major emerging economies, called for close global coordination to address the challenge posed by it.
The new standard will be instrumental in getting information relating to unaccounted money hoarded abroad and enable its eventual retrieval, Modi said, utilising the forum of G20, which accounts for 85 per cent of the world�s GDP.
Modi, while voicing India�s support for it, urged every jurisdiction, especially tax havens, to provide information for tax purposes in accordance with treaty obligations.
He also extended India�s backing for all initiatives to facilitate exchange of information and mutual assistance in tax policy and administration.
The Prime Minister, while flagging his concern over cross-border tax avoidance and evasion, also noted that increased mobility of capital and technology have created new opportunities for avoiding tax and profit sharing.
The Prime Minister made the remarks at the plenary session on the subject of �Delivering Global Economic resilience� on the second and final day of the summit held at the Brisbane Exhibition and Convention centre.
Modi underpinned the need for the world community to take coordinated decisions although each country has its domestic priority. �Need for policy coordination among major economies remains strong,� Modi said.
�Close coordination is important not just for addressing the challenge of black money but also security issues like terrorism, drug trafficking and arms smuggling,� he said.
Touching upon the resilience of the financial system in the world, Modi said it will also depend on cyber security.
At the end of the two-day summit, a three-page communique was released which welcomed the �significant progress� on the G20/OECD Base Erosion and Profit Shifting Action Plan to modernise international tax rules.
�We are committed to finalising this work in 2015, including transparency of tax-payer specific rulings found to constitute harmful tax practices,� it said.
G20 host and Australian Prime Minister Tony Abbott has vowed a crack down on tax evasion by MNCs and wanted the G20 countries to have intense cooperation in this regard.