BRICS tax model needs to reflect reality: FM

Finance Minister Nirmala Sitharaman highlighted the need for BRICS tax model to accurately represent the economic realities of developing countries during the BRICS Heads of Tax Authorities meeting in New Delhi. She pointed out that transfer pricing disputes and tax frameworks that don't align with their fiscal realities impose higher costs on developing countries' tax administrations.

Sitharaman proposed two new BRICS working groups to institutionalize cooperation on international taxation and revenue statistics. The International Taxation and Transfer Pricing Working Group aims to foster experience sharing on treaty interpretation, transfer pricing audits, and dispute-resolution mechanisms. Meanwhile, the Revenue Statistics Working Group seeks to develop a framework that reflects the unique economic and revenue structures of BRICS economies.