India Urges G20 to include Crypto in the Automatic Exchange of Information
The Finance
Minister of India has urged the G20 countries to include crypto within the
"Automatic Exchange of Information" framework. More than 100
countries have adopted the Common Reporting Standard under the framework.
Call to include Crypto under Automatic Exchange of Information
Nirmala
Sitharaman, Finance Minister of India, spoke about cryptocurrency on Friday
during the G20 Ministerial Symposium on Tax and Development in Bali, Indonesia.
Noting that
"tax transparency" is an area where "considerable progress has
been made with the Automatic Exchange of Information in respect of financial
accounts," she said, "Our
investigations have shown that numerous layers of entities are often set up by
tax evaders to conceal their unaccounted assets."
Sitharaman added
that although "the Automatic Exchange of Information framework provides
for financial account information to various jurisdictions, tax evaders are
smart and explore other avenues to shift their unaccounted wealth through
investment in non-financial assets." Underlining the importance of the
area as a point of action for the G20, the Finance Minister said:
"While
the development of the crypto asset reporting framework is underway, I call
upon the G20 to examine the feasibility of an 'Automatic Exchange of
Information' in respect of other non-financial assets beyond those covered
under the CRS, like immovable properties, as well."
The Automatic
Exchange of Information (AEOI) aims to reduce global tax evasion. The Common
Reporting Standard (CRS) is an information standard for the AEOI. It was
developed in response to a G20 request and approved by the Organisation for
Economic Co-operation and Development (OECD) Council in July 2014.
The OECD
explained that the CRS calls on jurisdictions to obtain information from their
financial institutions and automatically exchange that information with other
jurisdictions on an annual basis.
100+ Countries Have Committed to the CRS
The Indian Finance Minister also added, "Over 100 countries have committed to exchanging financial account information under the Common Reporting Standards."
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