G20 nations to fight against tax evasion

G20 leaders sign deal to curb tax evasion and money laundering. The countries have agreed upon exchange of information regarding financial data of foreign accounts.
In the back drop of panama papers leak the communiqué attended by the G20 finance ministers and central bank governors urged the need for strong measures against tax heavens.
The leadership stressed for the need of transparency in financial institutions to prevent money from being used for illegal activities such as funding terror organizations, trafficking and drug deals.
India is also a part of the G7 summit initiative, financial action task force, against money laundering. The task force is operational since 1989.
The G20 also expects all countries to be a part of the automatic information exchange program. Organization of economic cooperation and development (OECD) is working with G20 to indentify jurisdictions which do not cooperate with tax transparency.
IMF also stressed that major multinationals should become transparent with taxes and income. Oxfam organization released data that shows even giants like Apple and General electric stash trillions in off-shore accounts by evading taxes.
India has formed a probe team over the names listed on “panama papers”. There are 500 Indians listed on the list. India does not have an official estimate over the total amount of black money held by Indians but unofficial estimate is around $1.4 trillion.
India is also in agreement with USA over mutual sharing of information in regard with possible tax evasion by its citizens.

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