Please find enclosed, for information only, the paragraphs regarding tax and fiscal issues in the Final Declaration of the 8th BRICS Summit, held this weekend in Goa, India:
“50. We reaffirm our commitment towards a globally fair and modern tax system and welcome the progress made on effective and widespread implementation of the internationally agreed standards. We support the implementation of the Base Erosion and Profit Shifting Project (BEPS) with due regard to the national realities of the countries. We encourage countries and International Organisations to assist developing economies in building their tax capacity.
- We note that aggressive tax planning and tax practices hurt equitable development and economic growth. Base Erosion and Profit Shifting must be effectively tackled. We affirm that profit should be taxed in the jurisdiction where the economic activity is performed and the value is created. We reaffirm our commitment to support international cooperation in this regard, including in the Common Reporting Standard for Automatic Exchange of Tax Information (AEOI).
- We note the ongoing discussions on international taxation matters. In this regard, we recall the Addis Ababa Action Agenda on Financing for Development including its emphasis on inclusive cooperation and dialogue among national tax authorities on international tax matters with increased participation of developing countries and reflecting adequate, equitable, geographical distribution, representing different tax systems.
- We support the strengthening of international cooperation against corruption, including through the BRICS Anti-Corruption Working Group, as well as on matters related to asset recovery and persons sought for corruption. We acknowledge that corruption including illicit money and financial flows, and ill-gotten wealth stashed in foreign jurisdictions is a global challenge which may impact negatively on economic growth and sustainable development. We will strive to coordinate our approach in this regard and encourage a stronger global commitment to prevent and combat corruption on the basis of the United Nations Convention against Corruption and other relevant international legal instruments.”
The complete Declaration can be found on the brics2016 website.