New Delhi: on Wednesday, Union Finance Minister Nirmala Sitharaman telephonically interviewed the U.S. Treasury Secretary Janet Yellen.
A post from the Treasury Department’s official X account read, “Today, U.S. Treasury Secretary Janet Yellen @SecYellen had a conference call with India’s Union Treasury Secretaries. The two leaders engaged in an amicable conversation about #International Taxation”.
Before that, at G20 Summit the two spoke when they met during the convention which took place in Indian capital from 9th to 10th September last year as part of India’s rotating presidency.
These key priorities for both countries were also discussed by their leaders; and that is why the international community regards them as such important stakeholders in solving global economic and financial issues.
It is understood that phone conversation basically changed direction International Taxa complex area involving how countries tax cross-border income, profits and assets.
The topic covers more points such as residence vs. procurement, double taxation as well as transfer pricing and anti-avoidance measures addressing base erosion and profit shifting (BEPS) issues.
Tax obligations of individuals and businesses are determined by residence and source while double taxation can be problematic where similar earnings are taxed in two countries.
Transfer pricing within multinational corporations ensures that transactions are fair while tax havens targetting practices like profit shifting hopes to uphold tax integrity
In their last meeting on September 8th of last year, Sitharaman ad Yellen explored ways to strengthen bilateral cooperation between the two democracies to address and respond to pressing global economic challenges.
Sitharaman and Yellen held discussions aimed at promoting international cooperation.
The US Treasury Secretary commended India for emphasizing on concluding the seminal two-pillar global tax agreement under an inclusive framework on July 17th, 2023.
“I also appreciate India focusing on finishing a historic Two-Pillar Global Tax Deal under an Inclusive Framework and I think we are close to having an agreement. Last autumn, during the 9th EFP held in New Delhi as part of US-India Economic and Financial Partnership (EFP), we had a fruitful discussion, and I am looking forward to convening the tenth EFP meeting,” Yellen said.
