EUR 1.2 trillion Asian wealth kept outshore, corresponds to a potential annual revenue loss of EUR 2 billion

According to the Tax Transparency in Asia Report 2023 report, EUR 1.2 trillion of the Asian wealth kept outshore, corresponds to a potential annual revenue loss of EUR 2 billion. The report aims to show the Asian countries’ progress in the last decade and to guide the future work of the Asia Initiative.

While launching the report, Zayda Manatta, head global forum, said that since 2009, cross-border exchange of information and related programmes have enabled Asian countries to identify over EUR 20.1 billion in additional revenues; tax, interest and penalties.

The report further states that Asia accounted for 38.8 percent of the assumed USD 7.8 trillion lost by developing countries due to IFF (illicit financial flow).

The report was launched during the fourth high level meeting of the Asia Initiative, 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 of the Republic of Indonesia.

Gaël Perraud, Chair of the Global Forum; and Zayda Manatta, Head of the Global Forum Secretariat, will also participate in the opening session. India is hosting and organising the 4th High Level meeting of the Asia Initiative of the Global Forum. The global forum is the body working on the implementation of the internal standards on tax transparency and exchange of information around the world. Currently, 167 jurisdictions of the world are members of the global forum which include all G20 countries.

The report on tax transparency sheds light on implementation of transparency and exchange of information for tax purposes. The report suggests that at least EUR 20.1 billion of additional revenues were identified through the use of exchange of financial accounts information, which encompasses both the use of data and voluntary disclosure programs.