The finance ministers of G20 countries are expected to outline implementation plans, timelines and approaches for the automatic exchange of tax information among member nations to curb tax evasion.
The timelines will be set during the upcoming meeting of G-20 finance ministers and central bank governors at Cairns, Australia.
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Barry Sterland, G20 finance deputy secretary, said that the G20 meeting will set definite timelines for common reporting standards, a new approach to facilitate exchange of tax information.
Through the sharing of tax information between the G-20, it will become difficult for companies and wealthy individuals to stash money in foreign bank accounts and will require foreign workers to declare to their home country what they have earned abroad, and how much of it they paid out in taxes.
The meeting will also discuss issues such as progress on modernizing international tax system for 21st century and reforms in the international institutions.
Additionally, the G20 meeting will focus on macro-economic cooperation among the G20 countries to increase global GDP by an additional 2% by 2018.
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By GlobalDataThe move is also expected to help India to track unaccounted money hidden by its citizens in foreign banks.
The move comes as India and other economies have been arguing for an effective system for receiving financial information from other nations, especially low tax jurisdictions.
This meeting of the finance ministers will be followed by a meeting of the heads of state in November in Brisbane, Australia.
"We expect a group of countries to agree to a reasonably rapid timeline (for implementing automatic exchange of tax information). Timelines and approaches will be discussed in the September meeting of finance ministers," added Barry Sterland.
Sterland added that the automatic exchange of information will serve as most powerful tool to fight against tax evasion.
