India, U.S. To Intensify Cooperation in Tax Evasion Cases
NEW DELHI: India and the United States have decided to enhance cooperation for automatic exchange of information on tax evasion and detection of financial crimes, shoring up efforts to crackdown on black money cases involving economic channels of the two countries.
A team of the U.S. Treasury officials recently met Indian Income Tax and CBDT officials for negotiating an Inter-Governmental Agreement (IGA) which will enable faster access to tax evasion related information and tax crimes by individuals and entities of the two countries.
India, since 2009, has a Double Taxation Avoidance Agreement (DTAA) treaty with the US which is also under revision for betterment of protocols.
"The US is a strategic partner when it comes to combating black money and automatic exchange of classified information on tax evasion cases. High-level negotiations are underway to enter into a IGA as stipulated under the Foreign Account Tax Compliance Act (FATCA) of the economic superpower," sources privy to the development told PTI
The Central Board of Direct Taxes (CBDT), which is the nerve agency of the government in black money cases as it administers the I-T department, recently also began talks on the Mutual Agreement Procedure (MAP) with the U.S. officials. These talks, sources said, have begun after an interval of more than a year and two rounds of discussions have already been held between the authorities.
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