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The heads of the tax authorities of the BRICS (Brazil, Russia, India, China, South Africa) countries held an online meeting which was chaired by India and concluded on Wednesday, September 18th, 2021. The representatives agreed to continue closer cooperation and creating tax administrative capacity and effective tax management systems, especially in light of the digitalization and emergence of new technologies. It was also agreed that China will be the next country to chair the meeting of the tax authorities of BRICS countries in 2022.
The BRICS tax officials have agreed to promote further cooperation in the area of establishing, upgrading, and monitoring tax administration capacity with the assistance of new technologies with a focus on establishing new, efficient, and accurate tax collection practices amongst BRICS countries. Moreover, the participants have agreed to organize and take part in workshops, exchange knowledge and expertise, and to develop projects and initiatives on implementing digital tax administrative procedures and innovations.
Earlier in 2017, the five countries announced the signing of a memorandum of cooperation on tax practices and confirmed their support of the G20/OECD Inclusive Framework on BEPS and the adoption of the common reporting standard (CRS). Each country also established a commitment in approaches to combat international tax evasion practices, exchange of information between relevant tax authorities for the promotion of tax transparency, as well as providing advice and guidance to other emerging economies.
Furthermore, during the meeting, the difficulties and challenges caused by the COVID-19 pandemic and faced by the tax authorities of BRICS countries were discussed with enterprise support, the mediation and resolution of tax-related disputes, and the application of big data, just some of the approaches proposed. Another proposal of note was the implementation of virtual and paperless tax services amidst the global pandemic.
Finally, after the tax meeting a joint communique’ was issued by the five countries. The document outlines that the tax authorities of BRICS countries, as well as other countries globally, seek to address the challenges of “balancing the need to tackle the concerns of taxpayers by easing compliance and reporting obligations with the mandate to obtain optimum revenues with commendable grit and innovation".
The meeting of the tax authorities of Brazil, Russia, India, China, and South Africa in 2021 mainly focused on digital transformation, improved tax collection practices, and the sharing of knowledge and expertise in a number of areas. At PHC Advisory we constantly monitor the regulatory and fiscal updates in the Indian and Chinese markets among many others. If you would like to know more about the most recent tax developments, please contact us at info@phcadvisory.com.
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