Finance Minister Nirmala Sitharaman has said that the outcome of current international tax discussions could influence the way cross border taxation is handled for many years.
Speaking at the opening session of the BRICS Tax Heads meeting in New Delhi, Sitharaman said BRICS nations represent major developing economies and source countries that have strengthened their domestic tax systems despite starting from relatively limited capacity. She said their views are important for creating international tax arrangements that are fair and sustainable.
The Finance Minister also highlighted the changing nature of tax administration, saying authorities are increasingly moving away from paper based and relationship dependent procedures towards digital systems supported by data.
She pointed to India’s use of faceless assessment, pre filled tax returns, real time invoice verification and artificial intelligence based assistance for taxpayers. According to her, these measures have attracted interest from other BRICS members.
Sitharaman said the BRICS tax discussions this year have focused on three main areas, namely technology, administration and people. The meeting is also set to examine proposals for two new working groups covering international taxation and transfer pricing, along with revenue statistics.
She further noted that transfer pricing disputes can place a particularly heavy burden on tax authorities in developing economies. She added that revenue measurement systems that fail to reflect the fiscal conditions of individual countries can influence both external perceptions and how nations assess their own economic position.