Joint Brics’ action against tax dodgers

Brics (Brazil, Russia, India, China and South Africa) countries agreed yesterday to cooperate to tackle tax evasion and tax loopholes.

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

Kingon was speaking after the Brics tax and customs meetings held this week and following another meeting in April at which 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 havens to work with the international mechanisms to avoid tax evasion.”

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

With regards to cryptocurrencies and blockchain technology, all Brics tax heads said more research was needed as blockchain technology offers many opportunities but there are also risks.

No unified strategy was announced on the matter. – ANA