The Reserve Bank on Tuesday said it would deal with the problem of black money being hidden in tax havens by continuously updating its regulations in line with the G-20 guidelines on strengthening transparency in cross-border movement of capital."The Reserve Bank would continue to incorporate in its regulations latest international best practices (to deal with tax havens and non-cooperative jurisdictions)," the central bank said in its response to the recommendations of the G-20 Working Group on Enhancing Sound Regulation and Strengthening Transparency.
The working group of G-20 nations, which include developed and developing countries, underlined the need for increased disclosure requirements on the part of taxpayers and financial institutions to report transactions involving non-cooperative jurisdictions.
The recently concluded G-20 summit in London pledged "to take action against non-cooperative jurisdictions including tax havens."
The G-20 communique said, "We stand ready to deploy sanctions to protect our public finances and financial systems. The era of banking secrecy is over."
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