India, US agree to tackle tax evasion

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 the US, met US treasury secretary Jacob J. Lew for the Sixth Annual US-India Economic and Financial Partnership 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 the National Investment and Infrastructure Fund 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 and tax examination abroad. We look forward to the competent authorities of the two countries engaging in bilateral dialogue to move forward 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 increased information sharing and cooperation, including a dialogue held recently in India. We both agree on the importance of fighting illicit finance in all forms,” it said.