As nations across the globe are in hot pursuit of tax evaders and terror financing, India and the US have agreed to step up their joint work in this area, while Washington has extended its support for India’s trillion-dollar infrastructure development needs as part of its new found relationship to combat terror. Both countries are committed to continue collaboration and sharing of experience in tackling offshore tax evasion and avoidance, including joint tax audits and examination and look forward to the competent authorities of the two countries engaging in bilateral dialogue to move forward in the changing politico-geographical world. Tackling money laundering and terror financing have been a tough battle for any one country alone. There has to be a joint sharing of information and cooperation in all spheres. Prime Minister Narendra Modi first focused US on the importance of fighting terror jointly. The two governments have already forged an inter-governmental pact to share financial information under the Foreign Account Tax Compliance Act. This Act requires the US non-residents to share information on their financial assets and revenues outside the country once a year. As the talks focused on information sharing the trillions stashed by American companies in offshore tax havens too came under discussion. The two governments would also work with the private sector on areas like policies and regulatory reforms, besides mobilising capital from domestic and foreign sources to build infrastructure and create jobs. The developments have taken place since the launch of the Economic and Financial Partnership to look forward to continued engagement in an effort to strengthen our relationship, our economies, and the global economy. The two countries noted the progress in sharing of financial information between each other under the inter-governmental agreement pursuant to Foreign Account Tax Compliance Act (FATCA). The two sides continuing to engage in discussions on full reciprocal arrangement on FATCA shows money laundering and terror funding has close relations and has been growing large day-by-day.
