Brazil, Russia, India, China and South Africa (Brics) have committed to combat under-invoicing, stem dubious profit shifting practices, and implement global standards of transparency.
The five countries made this commitment in Brazil in a declaration issued at the ninth meeting of the Brics ministers of trade.
The declaration says the Brics support efforts to increase trade and recognise that actions such as under-invoicing have a negative impact on trade and industrial policy and tax collection, and therefore need to be addressed.
During the summit, South African stakeholders raised concerns over trade practices and economic policies for growth and tax revenue collection following widespread under-invoicing reported by local companies.
South African businesses have been particularly affected by under-invoicing of certain imported goods, including clothing, footwear, poultry and steel products.
The Brics say they remain committed to the implementation of global standards on transparency and exchange of information and the minimum standards in the OECD/G20’s framework to prevent tax-base erosion and profit shifting.
The declaration specifically noted that progress was being made on systems for the automatic exchange of information for tax purposes.
“We remain committed to enhancing our efforts on the prevention of base erosion and profit shifting, exchange of tax information, and needs-based capacity building for developing countries,” the declaration concluded.
Categories: Trade Based Financial crimes News