G20 backs Modi's pitch for repatriation of black money

Prime Minister Modi supported a new global standard on automatic exchange of tax information

In a victory for India, the G20 on Sunday endorsed Prime Minister Narendra Modi's strong pitch for repatriation of black money at its summit here, echoing the government's line on the need for transparency and disclosure of tax information.

Modi while voicing India's support for a new global standard on automatic exchange of tax information urged every jurisdiction, especially tax havens, to provide information for tax purposes in accordance with treaty obligations.

The new global standard will be instrumental in getting information relating to unaccounted money hoarded abroad and enable its eventual repatriation, Modi said, utilising the forum of G20, which accounts for 85 per cent of world's GDP.

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 three-page communique was released at the end of the two-day summit of Group of 20 industrialised and leading emerging economies hosted by Australia.

Welcoming the "significant progress" on the G20/OECD Base Erosion and Profit Shifting (BEPS) Action Plan to modernise international tax rules, it said, "We are committed to finalising this work in 2015, including transparency of tax- payer specific rulings found to constitute harmful tax practices."

Briefing newsmen, Railways Minister Suresh Prabhu and External Affairs Ministry spokesperson Syed Akbaruddin said the reference to transparency, which was not there in the draft communique, was incorporated in the final communique after Prime Minister's strong intervention at today's plenary session.

After Prime Minister Modi's intervention, several countries, notably Brazil and South Africa wanted a reference to be made to transparency in the final communique, Akbaruddin said.

"After the prime minister's own and strong intervention (on repatriation of black money), several countries shared his sentiments and wanted the views to be reflected in the final communique," he said.