A mutually acceptable mechanism needs to be worked out among BRICS nations to ensure that MNCs do not dodge taxes, along with norms to curb black money and bring those accused of corruption and tax evasion to book, an Indian official said on Sunday.
"Another key issue that we are pushing is tax evasion, black money and corruption. Under the complex international tax architecture, there are companies, especially MNCs which have a presence across borders, who end up paying no tax anywhere. They shift their profits," said Economic Relations Secretary Amar Sinha said at a press conference on the sidelines of the BRICS summit in south Goa town.
"So one of the key ideas, which the BRICS leaders have agreed, is that the taxation should happen at the point where the activity takes place, rather than where their registered headquarters are or where their main subsidiary is or the holding company is."
Sinha also said that there was a need for mutually agreeable norms to bring white collar criminals to book- the ones who cross international borders to avoid action.
"Both, people who are needed for corruption or white collar crimes or tax evasion have fled. They, along with that the assets and the money that is parked in safe havens, need to be brought back," he said.