New Delhi:

The G-20 leaders on Saturday decided on swift implementation of the reporting framework for crypto assets, saying a significant number of member nations want information exchange on such non-financial assets to start by 2027.

The Crypto Asset Reporting Framework (CARF) or template is being developed to make sure that such non-financial assets are not used by tax evaders to conceal their unaccounted wealth.

“We call for the swift implementation of the CryptoAsset Reporting Framework (“CARF”) and amendments to the CRS. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions,” said the G20 Leaders’ declaration, which was adopted by consensus.

The leaders of 20 developing and developed nations have reaffirmed the commitment to continue cooperation towards a globally fair, sustainable and modern international tax system appropriate to the needs of the 21st century.

“We remain committed to the swift implementation of the two-pillar international tax package. Significant progress has been made on Pillar One including the delivery of a text of a Multilateral Convention (MLC), and work on Amount B (framework for simplified and streamlined application of the arm’s length principle to in-country baseline marketing and distribution activities) as well as the completion of the work on the development of the Subject to Tax Rule (STTR) under Pillar Two,” the declaration said.

Briefing reporters after the summit, Finance Minister Nirmala Sitharaman said the G20 countries have made substantial progress on the two-pillar solution.

“Work has happened on exchange of information on immovable property transactions between countries. There is a launch of the pilot programme of the South Asia academy for tax and financial crime investigation in collaboration with the OECD,” Ms Sitharaman said.

Under the global tax deal, about 140 countries, including India, have agreed to an overhaul of global tax norms to ensure that multinationals pay taxes wherever they operate and at a minimum of 15 per cent rate. However, some vexed issues still need to be ironed out before its implementation.

The G20 countries called on the OECD to develop an inclusive framework to swiftly resolve the few pending issues relating to the MLC (multilateral convention) with a view to preparing the MLC for signature in the second half of 2023 and completing the work on Amount B by the end of 2023.

“We welcome the steps taken by various countries to implement the Global Anti-Base Erosion (GloBE) Rules as a common approach. We recognise the need for coordinated efforts towards capacity building to implement the two-pillar international tax package effectively and, in particular, welcome a plan for additional support and technical assistance for developing countries,” the declaration said.

The G20 countries also took note of the OECD report on ‘Enhancing International Tax Transparency on Real Estate’ and the ‘Global Forum Report on Facilitating the Use of Tax-Treaty-Exchanged Information for Non-Tax Purposes’.

The OECD has suggested automatic exchange with regard to information on real estate assets among countries and the setting up of digitalised ownership registers accessible to designated relevant government agencies on a real-time basis amid concerns over investments in foreign real estate being used to “shelter undeclared assets”.

The report noted that there has been a significant increase in foreign-owned real estate assets over the past decade, and a lot of funds have been shifted from financial assets to buying foreign real assets.

The Global Forum report also called for countries to adopt a ‘whole-of-government’ approach to address the challenge of illicit financial flows through the sharing of information from tax authorities to non-tax agencies, like financial intelligence units, anti-corruption agencies, customs authorities and public prosecutors.

India had been pressing for expanding the scope of common reporting standard (CRS) at the G20 to include non-financial assets like real estate properties, under the automatic exchange of information (AEOI) among OECD countries. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

U.S. Treasury Secretary Janet Yellen.
| Photo Credit: Reuters

U.S. Treasury Secretary Janet Yellen will travel to New Delhi to participate in the G20 leaders summit from September 7-10, making her fourth visit to India in 10 months, the Treasury Department said on Thursday.

Ms. Yellen intends to focus at the summit on strengthening the global economy and supporting low-and middle-income countries by advancing efforts on debt restructurings, the evolution of multilateral development banks (MDBs) and building International Monetary Fund trust fund resources, the Treasury said.

She will “continue to build momentum” for her drive to evolve the World Bank and other multilateral lenders to boost financing capacity to aid developing countries’ clean energy transitions, tackle pandemics, fragility and conflict, it said.

The Treasury estimates that the lenders collectively can unlock $200 billion in new financing over a decade with balance sheet measures now being implemented or under discussion.

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The Treasury said Ms. Yellen also will rally America’s G20 allies to maintain economic support for Ukraine and increase costs on Russia over Moscow’s continuing war in Ukraine. This includes supporting the G7-led price cap on Russian oil exports and efforts to strengthen global food security in the face of restrictions on Ukrainian grain exports.

At the same time, the Treasury said Ms. Yellen will work to deepen U.S. bilateral ties with India, a country she first described last November as a prime “friend-shoring” destination and alternative to China for U.S. investment and supply chains.

Also read | Help us make G20 summit a success: PM Modi

Treasury’s statement did not mention specific bilateral meetings.

On the sidelines of last year’s G20 Summit in Indonesia, Ms. Yellen met with the People’s Bank of China’s then-governor Yi Gang in first of several face-to-face meetings with senior Chinese officials in recent months to ease rocky U.S.-China ties, culminating in her visit to Beijing in July.