The issue of black money has now become a global menace which needs to be tackled as soon as possible. India has been one the worst suffer from this problem with billions of money flowing out of the country.
Taking the cognizance of this, Finance Minister Arun Jaitley said on 02 November 2015 that tax evasion and money laundering will become “extremely difficult” in the next 1-2 years, with a real-time global automatic exchange of information system coming into effect.
“I am quite certain that the activity is going on in that direction and the next 1-2 years are also going to bring significant results because with an almost real-time exchange of information, lives are going to become extremely difficult as far as lawbreakers in that regard are concerned,” he said.
“The world is also increasingly moving towards a situation where you can’t shift the profits that you earn in one jurisdiction and erode the capital base of that jurisdiction itself,” he said.
At the G20 nations’ Australia summit last November, leaders endorsed a new global transparency standard by which more than 90 jurisdictions will begin an automatic exchange of tax information, using a common reporting standard by 2017-18.
India is one of the early adopters of the automatic exchange of information standard.
He also said the Regional Centre for South Asia is going to be discussed in the meeting in order t0 strengthen international cooperation with regard to money laundering and tax evasion.
The South Asian Regional Intelligence Coordination Centre (SARICC) is likely to be set up, with seven member countries, including India, to be part of it.
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