BRICS countries agree on cooperation to tackle tax havens

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JOHANNESBURG, June 21 – BRICS countries on Thursday agreed to work together in tackling tax evasion and tax loopholes through growing cooperation between the counties and the use of the right international mechanisms to fend against tax havens.

Mark Kingon, the acting Commissioner of the South African Revenue Service, said that South Africa and Brazil were failing to meet taxation revenue targets due to anti-tax practices and tax evasion, while their counterparts’ tax collection was on par or had increased.

Kingon was speaking at the media briefing after the BRICS tax and customs meetings held this week and following another meeting that took place in April where the framework for the BRICS customs cooperation was discussed.

“Making it easier to tax people than it is for them to evade paying tax is another strategy discussed. Using the internet to connect tax collection agencies to retailers and other supply chain members,” Kingon said.

“We are working on more transparency and more cooperation with the banking sector to bring in the tax haven to work with the international mechanisms to avoid tax evasion.”

The week-long meeting also addressed the 4th Industrial Revolution, the economy, taxation and governance, with participants from all five BRICS countries.

Kingon also revealed that South Africa has legislation that allows the collection of tax revenue on behalf of other countries.

With regards cryptocurrencies and blockchain technology, all BRICS tax heads said more study and research were needed as blockchain technology offers many opportunities but also risks. No unified strategy was announced on the matter.

– African News Agency (ANA)