During the G-20 summit on Saturday, world leaders pledged to expedite the implementation of the Crypto Asset Reporting Framework (CARF), aiming for information exchange on non-financial assets related to cryptocurrencies to commence by 2027. The CARF is designed to prevent tax evaders from using such non-financial assets to hide their unaccounted wealth.

The G-20 Leaders' declaration, adopted by consensus, states, "We call for the swift implementation of the CryptoAsset Reporting Framework ("CARF") and amendments to the CRS. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions."

The leaders of 20 developed and developing nations also reaffirmed their commitment to cooperate on establishing a globally equitable, sustainable, and modern international tax system suited to the 21st century's requirements.

"We remain committed to the swift implementation of the two-pillar international tax package. Significant progress has been made on Pillar One, including the delivery of a text of a Multilateral Convention (MLC), and work on Amount B (framework for simplified and streamlined application of the arm's length principle to in-country baseline marketing and distribution activities), as well as the completion of the work on the development of the Subject to Tax Rule (STTR) under Pillar Two," the declaration stated.

Finance Minister Nirmala Sitharaman, briefing reporters after the summit, highlighted substantial progress on the two-pillar solution. She mentioned the exchange of information on immovable property transactions between Countries, the launch of the South Asia Academy for Tax and Financial Crime Investigation in collaboration with the OECD, and the need for capacity building and technical assistance for developing nations.

The global tax agreement, signed by about 140 countries, including India, aims to overhaul global tax standards, ensuring that multinational corporations pay taxes in all the countries they operate in, at a minimum rate of 15 percent. However, some unresolved issues remain to be addressed before its implementation.

The G-20 countries have called on the OECD to establish an inclusive framework to promptly resolve pending issues concerning the Multilateral Convention (MLC), aiming to prepare it for signature in the second half of 2023, and to finalize work on Amount B by the end of 2023.

The declaration also recognized the need for coordinated efforts to provide additional support and technical assistance for developing countries in implementing the two-pillar international tax package.

Furthermore, the G-20 countries acknowledged the OECD's report on 'Enhancing International Tax Transparency on Real Estate' and the 'Global Forum Report on Facilitating the Use of Tax-Treaty-Exchanged Information for Non-Tax Purposes.' The OECD proposed automatic exchange of information regarding real estate assets among countries and the creation of digitalized ownership registers accessible to designated government agencies in real-time. This initiative aims to address concerns about foreign real estate investments being used to conceal undeclared assets.

The Global Forum report encouraged countries to adopt a 'whole-of-government' approach to combat illicit financial flows by sharing information from tax authorities with non-tax agencies, including financial intelligence units, anti-corruption agencies, customs authorities, and public prosecutors.

India had advocated for expanding the Common Reporting Standard (CRS) under the automatic exchange of information (AEOI) among OECD countries to include non-financial assets such as real estate properties.