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Finance Minister Smt Shrimati Nirmala Sitharaman underscored the importance of international collaboration in tax transparency, particularly as economies digitalize and new financial products emerge. Speaking at the 18th Global Forum Plenary, she highlighted the use of technology and artificial intelligence alongside human judgment to make exchanged tax information effective. Stressing confidentiality and cybersecurity, she emphasized that no single country can tackle these challenges alone. India has strengthened voluntary compliance through predictable tax systems and integrates exchanged information into compliance and risk analyses. Innovation and accountability, she said, are essential for credible tax administration.
Finance Minister Smt Shrimati Nirmala Sitharaman emphasized the need for global cooperation in tax matters, highlighting the growing digitalization of economies and the rise of new financial products. Addressing the 18th Global Forum Plenary meeting, she stressed that technological tools, including artificial intelligence, should complement human judgment to ensure that the exchange of tax information among countries produces meaningful results. Advertisement
The Global Forum on Transparency and Exchange of Information for Tax Purposes, which includes 170 jurisdictions, monitors and reviews how international standards on transparency and information exchange are implemented. Shrimati Sitharaman underlined that confidentiality and cybersecurity must be maintained while addressing challenges arising from digitalization, innovative financial products, and evolving ownership structures. She pointed out that these challenges cannot be tackled by any single country alone and require coordination, trust, and timely sharing of relevant information.
She noted the critical role of the Global Forum in reviewing implementation, developing standards, and supporting countries. Transparency, according to her, is most effective when guided by clear rules, mutual respect, and shared objectives. Shrimati Sitharaman added that the collective focus should remain on fairness, sustainability, and maintaining public trust in tax systems.
The minister highlighted that voluntary compliance in India has improved over the past decade, driven by fairness and predictability in taxation. India has been using exchanged information to conduct broader analyses of compliance and risk. She further observed that technology and artificial intelligence present opportunities to process information efficiently, but emphasized that judgment, responsibility, and adherence to procedure are crucial. Innovation, she concluded, must always be balanced with accountability to strengthen and maintain credibility in tax systems.
Source PTI
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