Finance Minister Nirmala Sitharaman has emphasised the urgent need for timely and effective exchange of tax information between countries. She stated this is crucial in an era marked by rapid digitalisation and the emergence of complex new financial products.
Address at the Global Forum Plenary
Sitharaman made these remarks while speaking at the 18th Global Forum Plenary meeting. The event, a key gathering for international tax cooperation, took place recently. The minister highlighted the challenges and opportunities presented by the modern digital economy for tax authorities worldwide.
Leveraging Technology for Measurable Outcomes
The Finance Minister proposed a strategic approach to harness technology for better results. She specifically pointed to technological tools like artificial intelligence (AI) as potential game-changers. However, she cautioned that technology alone is not sufficient.
Sitharaman stressed that AI must be used in conjunction with human judgement and expertise. The combined force of advanced technology and skilled analysis should ensure that the vast amounts of tax information shared between jurisdictions lead to tangible and measurable outcomes.
The Core Challenge: Digital Economy and New Products
The push for enhanced cooperation stems from the evolving global financial landscape. The rise of the digital economy and innovative financial instruments can create gaps and complexities in cross-border taxation. Sitharaman's address underscores India's active role in advocating for a robust international framework to address these issues, ensuring fair taxation and combating tax evasion.
Her call to action at the forum signals a focus on moving beyond mere data sharing. The goal is to translate information into effective enforcement and policy decisions, creating a more transparent and equitable global tax system.
