28/04/23

ASIA: 1.2 trillion euros worth wealth kept offshore, according to OECD report.

As published on deccanherald.com, Friday 28 April, 2023.

Around 4 per cent of Asia's financial wealth amounting to 1.2 trillion euros was held offshore in 2016, leading to a potential annual revenue loss of 25 billion euros for the region, as per Tax Transparency in Asia Report 2023 released by the OECD on Thursday.

The report released during the fourth meeting of ‘Asia Initiative’ held in New Delhi, underlined the need to check tax evasion and illicit fund flows from developing countries like India.

Asia accounted for 38.8 per cent of the estimated $7.8 trillion loss by developing countries due to illicit fund flows between 2004-2013, the report said. In 2013 alone, it amounted to $ 482 billion.

“Developing economies are particularly affected, as these flows deprive nations of crucial funds to pursue their development agendas. As governments plan on long-term recovery and resilience strategies, tackling more effectively tax evasion and other forms of IFFs is increasingly pressing,” the report noted.

The Asia Initiative held in New Delhi was co-chaired by Sanjay Malhotra, Secretary, Department of Revenue, Ministry of Finance, Government of India, along with Suryo Utomo, Co-Chair of the Asia Initiative, Director General of Taxes, Ministry of Finance, Indonesia.

Through the Asia Initiative, launched at the end of 2021 under the Indonesian G20 Presidency, 16 Asian countries had signed up to the Bali Declaration by the end of 2022. The report acknowledges progress achieved in Asia between 2009 and 2022 in implementation of the international tax transparency standards and the use of all forms of administrative co-operation to fight tax evasion and other illicit financial flows,” said Sanjay Malhotra.

“While acknowledging the various levels of EOI maturity across the region, the Asia Initiative aims to benefit all,” he said.