FM flags global tax risks from digitisation, new financial products

Global tax systems must urgently adapt to digitalisation, new financial products, and evolving beneficial-ownership structures, Finance Minister Nirmala Sitharaman said on Tuesday, calling for deeper cooperation and stronger confidentiality systems among jurisdictions.

- MONIKA YADAV

She said this while explaining that although transparency and technology have strengthened India’s compliance systems, new risks from digitalisation, complex financial products and beneficial-ownership structures require collective global cooperation, strong confidentiality protections, and responsible use of shared information.

Speaking at the 18th Global Forum Plenary meeting on Transparency and Exchange of Information for Tax Purposes in New Delhi, she stressed that these emerging challenges “are not challenges that any one country can address alone” and require “coordination, trust, and timely exchange of relevant information.”