Smt. Nirmala Sitharaman, Union Minister of Finance & Corporate Affairs, Government of India, participated in the G20 Finance Ministers and Central Bank Governors meeting during June 8-9, 2019 at Fukuoka, Japan.
The important issues discussed at G-20 Finance Ministers and Central Bank Governors meet were:
1. The discussion focusses on profit allocation solution for taxing the profits made by digital economy companies. Digital business allocates their profits to low tax destinations. In this respect, Smt. Sitharaman strongly supported the potential solution based on the concept of ‘significant economic presence’ of businesses taking into account the evidence of their purposeful and sustained interaction with the economy of a country.
2. Smt. Sitharaman welcomed the commencement of automatic exchange of financial account information (AEOI) on a global basis with almost 90 jurisdictions successfully exchanging information in 2018. This would ensure that tax evaders could no more hide their offshore financial accounts from the tax administration.
3. Smt. Sitharaman also raised the need for international cooperation on dealing with fugitive economic offenders who flee their countries to escape from the consequences of law. She informed about the fugitive economic offenders law passed by India which provides for denial of access to courts until the fugitive returns to the country. This law also provides for confiscation of their properties and selling them off. She drew attention to the practice permitted by many jurisdictions, which allow economic offenders to use investment-based schemes to obtain residence or citizenship to escape from legal consequences and underlined the need to deal with such practices.
4. She also took note of the close collaboration of India, Japan and other like-minded countries, aligned with the Sendai Framework, in developing a roadmap to create a global Coalition on Disaster Resilient Infrastructure.