Committing to a global response to deal with cross border tax avoidance and evasion, the G-20, on 21 September 2014, in ministerial meeting held in Cairns, Australia, decided to put in place a mechanism for automatic exchange of tax information by 2017.
India has been at the forefront of raising the issues concerning tax avoidance and automatic exchange of information with a view to curbing tax evasion.
The communique further said that the G-20 leaders are strongly committed to a global response to cross-border tax avoidance and evasion so that the tax system supports growth-enhancing fiscal strategies and economic resilience. It said that action plan to tackle Base Erosion and Profit Shifting (BEPS) to make sure companies pay their fair share of tax would be finalized in 2015.
The BEPS initiative would ensure that tax is paid where profits are made.
The G20 ministerial meeting will be followed by a summit at Brisbane in November 2014.
The G-20 is a grouping of industrialized and developing countries. Its members are Australia, Argentina, Brazil, Britain, Canada, China, France, Germany, India, Italy, Japan, Mexico, South Korea, Russia, Saudi Arabia, South Africa, United States and European Union.