Financial Transparency Coalition

WASHINGTON – The U.S. Department of Justice is seeking records about American clients of HSBC in India who might be evading taxes, broadening the government's probe of banks suspected of helping tax dodgers.

India is beginning to take the threat tax havens pose to it very seriously, partly because of the work my friends at Global Financial Integrity have done in exposing the enormous costs to India of tax haven abuse. The Hindu Business Line reports just how seriously the issue is being taken in the 2011 budget:

Transactions with entities in ‘non-cooperative’ jurisdictions that do not effectively exchange information with India may soon attract TDS (tax deduction at source) of at least 30 per cent. This is one of the several ‘anti-avoidance’ measures that the Finance Minister, Mr Pranab Mukherjee, has proposed in...

HONG KONG – Indian Finance Minister Pranab Mukherjee presented the country’s annual budget on February 28, which contained measures to ease the tax burden on investment as well as changes to indirect taxes, proposals to tackle 'black money' and a commitment to move forward with the new Direct Taxes Code.

NEW DELHI – While the Union budget disappointed those hoping for an amnesty scheme for black money transactions, top North Block officials virtually ruled out any such plan in the future.