Finance Minister P Chidambaram today said the government is working towards modernising tax administration to minimise transaction cost and maximise taxpayer convenience.
Addressing the heads of revenue department of Brazil, Russia, India, China and South Africa (BRICS), the minister said that the tax administration is faced with new challenges such as allocation of taxing rights and sharing of taxable income between countries from cross-border deals.
He said there is a need to increase tax revenues and providing quality service to tax payers.
“India has been modernising its tax administration in a way that will minimise transaction costs and maximise taxpayer convenience, without compromising the deterrence factor,” he said.
He said that the government is committed to a stable tax regime, moderate tax rates, non-adversarial tax administration and a fair mechanism for dispute resolution.
He emphasised on the need for greater cooperation among BRICS countries in the area of tax administration. Chidambaram said it was necessary to hold deliberations to address issues of mutual interest. This would help BRICS countries to play a proactive role in modifying and developing existing international standards on international taxation and transfer pricing in order to safeguard their tax revenue interests, he added.
During the two-day meeting, the participants are likely to deliberate on issues of mutual concerns related to tax administration, including those pertaining to international taxation, transfer pricing, cross border tax evasion and avoidance, tax dispute resolution mechanisms.
The meeting, the first of its kind, was attended by Brazil Federal Revenue Secretary Carlos Alberto Freitas, Russia’s Federal Tax Service Deputy Commissioner Aleksey Overchuk, among others.