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Tuesday, March 28, 2023

India Calls on G20 to Bring Crypto Within Global ‘Automatic Exchange of Information’ Framework

India Calls on G20 to Bring Crypto Within Global ‘Automatic Exchange of Information’ Framework – Nirmala Sitharaman, India’s finance minister, discussed cryptocurrencies on Friday at the G20 Ministerial Symposium on Tax and Development in Bali, Indonesia.

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She noted that “considerable progress has been made with the Automatic Exchange of Information in respect of financial accounts” in the area of “tax transparency,” and stated that her investigations had revealed that tax evaders frequently create complex structures of entities to hide their unaccounted assets.

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Tax evaders, being smart, look for different ways to shift their unaccounted wealth through investments in non-financial assets, Sitharaman continued, even though “the Automatic Exchange of Information system provides for financial account information to other jurisdictions.” 

The finance minister emphasized that the G20 will take action in this area and provided the following details:

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“I urge the G20 to examine the feasibility of an Automatic Exchange of Information in respect of other non-financial assets beyond those covered by the CRS, such as immovable properties, while the development of the crypto asset reporting framework is underway.”

AEOI, or Automatic Exchange of Information, seeks to reduce global tax evasion. AEOI information standards include the Common Reporting Standard (CRS). The Council of the Organization for Economic Co-operation and Development (OECD) approved it in July 2014 after it was developed in response to a G20 request.

According to the OECD, the CRS requires jurisdictions to collect data from their financial institutions and automatically share it with other jurisdictions on an annual basis.

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“Over 100 countries have committed to exchanging financial account information under the Common Reporting Standards,” the Indian finance minister continued. She did, however, note that some countries have not yet started exchanging information according to this framework.

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