You are probably aware that loopholes in the international financial system let corporations and wealthy individuals get out of paying their fair share of taxes. You might even know that there are some significant reforms taking place to try and close the gaps in the system. But did you know that these reforms aren’t being discussed in a global forum where everyone can participate? This year, BRICS countries are in a unique position to show leadership on a proposal that developing countries have been demanding for years.
Since the HSBC Swiss leaks last year, there's been a growing scrutiny of the role of financial secrecy in aiding tax evasion, so it's no surprise that Prime Minister Modi's focus during his Switzerland visit included the subject of Indians with hidden Swiss bank accounts. Unfortunately, the issue of cross-border movement of black money is complex and governments around the world are limited in what they can do on their own to persuade jurisdictions like Switzerland to cooperate.