US, In­dia Agree to Co­op­er­ate on Check­ing Tax Eva­sion

The Economic Times - - Economy - Press Trust of In­dia

Wash­ing­ton: In­dia and the US have agreed to en­hance co­op­er­a­tion on tack­ling off­shore tax eva­sion through in­for­ma­tion shar­ing and joint au­dits, while in­ten­si­fy­ing ef­forts to com­bat money laun­der­ing and ter­ror fi­nanc­ing. Fi­nance Min­is­ter Arun Jait­ley, on the sec­ond day of his seven-day visit to US, met US Trea­sury Sec­re­tary Ja­cob J Lew for the Sixth An­nual US-In­dia Eco­nomic and Fi­nan­cial Part­ner­ship (EFP) here on Thurs­day and agreed to a di­a­logue by com­pe­tent au­thor­i­ties on the two sides to raise en­gage­ment on tack­ling tax eva­sion.

The US also ex­tended sup­port to Na­tional In­vest­ment and In­fras­truc­ture Fund (NIIF) in a bid to help In­dia raise re­sources and fund in­fras­truc­ture growth, said a Joint state­ment af­ter the meet­ing.

“We are com­mit­ted to con­tin­ued col­lab­o­ra­tion and shar­ing of ex­pe­ri­ence in tack­ling off­shore tax eva­sion and avoid­ance, in­clud­ing joint tax au­dits & tax ex­am­i­na­tion abroad. We look for­ward to the Com­pe­tent Au­thor­i­ties of the two coun­tries en­gag­ing in bi­lat­eral di­a­logue to move for­ward co­op­er­a­tion in th­ese ar­eas,” it said.

The meet­ing was also at­tended by Fed­eral Re­serve Chair Janet Yellen and Re­serve Bank of In­dia Gov­er­nor Raghu­ram Ra­jan among oth­ers. “We have en­hanced our co­op­er­a­tion in tack­ling money laun­der­ing and com­bat­ing the fi­nanc­ing of ter­ror­ism through bet­ter info shar­ing and co­op­er­a­tion, in- clud­ing a di­a­logue held re­cently in In­dia. We both agree on the im­por­tance of fight­ing il­licit fi­nance in all forms as an im­por­tant means of tack­ling global ter­ror­ism,” it said.

The two coun­tries noted the progress in shar­ing of fi­nan­cial in­for­ma­tion be­tween the two coun­tries un­der the in­ter-gov­ern­men­tal agree­ment pur­suant to FATCA.

“The two sides will con­tinue to en­gage in dis­cus­sions on full re­cip­ro­cal ar­range­ment on FATCA. We look for­ward to in­creased co­op­er­a­tion in shar­ing of cross-bor­der tax-in­for­ma­tion,” the joint state­ment said.

Dur­ing the meet­ing, Lew is be­lieved to have ap­pre­ci­ated Jait­ley’s ef­fort to re­solve more than half of the con­cerns re­lated to tax dis­putes.

“Over the past year, our tax au­thor­i­ties re­solved a sig­nif­i­cant por­tion of bi­lat­eral tax dis­putes be­tween the United States and In­dia,” the state­ment said.

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