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US cites India’s economic sacrifice for Iran deal

US cites India’s economic sacrifice for Iran deal

Indian Prime Minister Narendra Modi and US President Barack Obama wave to the media before their talks at the Hyderabad House in New Delhi.

Indian Prime Minister Narendra Modi and US President Barack Obama wave to the media before their talks at the Hyderabad House in New Delhi. (File Photo Maeeshat)

Washington:(IANS) The White House has again warned that if the Republican controlled congress unilaterally kills the Iran nuclear deal it would greatly damage America’s standing as it would lose the backing of countries like India.

Indian leaders had agreed to curtail the import of oil from Iran making an “economic sacrifice” and backed the sanctions against Tehran to advance US effort to prevent Iran from obtaining a nuclear weapon through diplomacy, Press Secretary Josh Earnest told reporters Friday.

“In essence …countries like India had agreed that they would take these steps, even at their own expense, to try to reach this broader international agreement,” he said.

“And the good news is that that agreement has been reached.  And it is an agreement that is supported by the international community — 99 percent of the world as the President (Barack Obama) has described it,” Earnest said.

“And that’s why it would be so damaging to the standing of the United States for the United States Congress to act unilaterally to kill this deal,” he said.

“No longer would countries like India, who have been making a substantial sacrifice over the years, have any interest or incentive to continue to enforce those sanctions against Iran,” Earnest said.

“There is no basis, there is no credible claim for why they would be willing to do that,” he said.

“And there is no denying the significant negative impact on United States credibility for the United States to be isolated in this way.”

“That’s why the President has said if Congress were to move forward to kill this deal or kill this agreement, it would, in fact, yield a better deal for Iran,” Earnest said.

“Because what we would see is that Iran would get sanctions relief; they would have the ability to sell oil to India and get the proceeds of doing so…without having to submit to the most intrusive set of inspections that have ever been imposed on a country’s nuclear programme,” he said.

“That’s why I’ve long said that the case before Congress is that Iran is going to get sanctions relief,” Earnest said.

“The question is whether or not the United States and the international community is going to get anything for it.”

“And that is ultimately the choice before members of Congress right now,” he said.

Earnest recalled that when the sanctions were originally put in place US officials traveled around the world “including to India, sat down with the Indian government and asked them to curtail the amount of Iranian oil that they imported into the country.”

“And we acknowledged in the context of those discussions that this would be an economic sacrifice that the people of India and that the economy of India would have to make,” he said.

“But Indian leaders agreed to it by saying that this is something that they were willing to do if they can advance our effort to prevent Iran from obtaining a nuclear weapon through diplomacy,” Earnest said.

In response to another question, Earnest said that he was not aware of any planned visits by Prime Minister Narendra Modi to the White House in conjunction with his travel to the United States for the UN General Assembly next month.

 (Arun Kumar can be contacted at arun.kumar@ians.in)

United States and India Sign Agreement to Share Tax Information

United States and India Sign Agreement to Share Tax Information

India USA

New Delhi: U.S. Ambassador to India Mr. Richard Verma and Indian Revenue Secretary Mr. Shaktikanta Das today signed an Inter Governmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency between the two nations on tax matters.  The agreement underscores growing international cooperation to end tax evasion everywhere. The text of the signed agreement will be available on the website of the Indian Income Tax Department (www.incometaxindia.gov.in) and the website of U.S. Treasury (www.treasury.gov).

The United States (U.S.) and India have a longstanding and close relationship.  This friendship extends to mutual assistance in tax matters and includes a desire to improve international tax compliance. The signing of IGA is a reaffirmation of the shared commitment of India and USA towards tax transparency and the fight against offshore tax evasion and avoidance.

At the time of signing, Revenue Secretary Shaktikanta Das stated, “Signing the IGA with U.S. to implement FATCA today, is a very important step for the Government of India, to tackle offshore tax evasion. It reaffirms the Government of India’s commitment to fight the menace of black money. It is hoped that the exchange of information on automatic basis, regarding offshore accounts under FATCA would deter tax offenders, would enhance tax transparency and eventually bring in higher equity in to the direct tax regime which necessary for a healthy economy.”

Ambassador Verma, who signed on behalf of the United States, stated, “The signing of this agreement is an important step forward in the collaboration between the United States and India to combat tax evasion.  FATCA is an important part of the U.S. Government’s effort to address that issue.”

FATCA is rapidly becoming the global standard in the effort to curtail offshore tax evasion.  To date, the United States has IGAs with more than 110 jurisdictions and is engaged in related discussions with many other jurisdictions.

The United States enacted FATCA in 2010 to obtain information on accounts held by U.S. taxpayers in other countries.  It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) who do not agree to identify and report information on U.S. account holders.  As per the IGA, FFIs in India will be required to report tax information about U.S. account holders directly to the Indian Government which will, in turn, relay that information to the IRS.  The IRS will provide similar information about Indian account holders in the United States. This automatic exchange of information is scheduled to begin on 30th September, 2015.

Both the signing of the IGA with U.S. as well as India’s decision to join the Multilateral Competent Authority Agreement (MCAA) on 3rd June, 2015 are two important milestones in India’s fight against the menace of black money as it would enable the Indian tax authorities to receive financial account information of Indians from foreign countries on an automatic basis.