The BRIC countries of Brazil, Russia, India, and China have agreed to strengthen cooperation in areas such as transfer pricing and automatic exchange of financial account information to jointly crack down on cross-border tax avoidance and evasion, Wang Jun of China’s State Administration of Taxation (SAT) said, according to the SAT’s English-language translation of a November 26 Xinhuanet article, released on Monday.
Wang Jun said that officials attending the third BRIC country conference of taxation leaders held in Moscow expressed concern about multinationals that divert large profits to tax havens, generating “grey profit” not subject to tax in any country.
Officials have agreed to a “zero tolerance” stance on cross-border tax avoidance and evasion to safeguard country tax systems from base erosion and to protect the world taxation order, Wang Jun said. He said the BRICs will work together to prevent taxpayers from transferring profit to tax havens and tax shelters and from concealing income to evade tax payment obligations.
Wang Jun said that the BRICs also agreed to jointly provide technical support to developing countries and help them improve tax collection and management capabilities. The countries will follow up with each other on the implementation of the OECD/G20 base erosion and profit shifting (BEPS) project, he said.
Further, Wang Jun said that China intends to continue to increase its participation in the development of global taxation rules.
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