Page 55 - IACC Newsletter November 2012 Issue no. 7

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The school will come up at the Start-up Village in partnership with Jaaga.in, a hub of digital creativity in Bengaluru
supporting designers, start-ups, and digital freelancers. Jaaga.in has been set up by Murray.
Addressing a press conference here, Freeman said the school would enroll 100 students initially for a 6-month course of
which 4 months would be devoted to residential classes. Brighter ones with better ideas and entrepreneurship skills
would be selected for the final two-month course. Preference would be given to those with better communication skill.
The school would help young first time entrepreneurs to launch successful Internet companies.
Startup Village CEO, Sijo Kuruvilla said the engineering colleges in the state had started to encourage their students to
set up their own ventures and the results were showing in the growing number of applications reaching the Startup
Village. Around 20 students were applying every week, he added.
The Kerala government recently announced a policy to encourage student entrepreneurs. The policy ensures grace mark
and relaxation in attendance for students who start new ventures.
US explores treaty to nail US tax defaulters in India
The US has said it is working on an inter-government engagement with India and other countries to check non-
compliance by American taxpayers using foreign bank accounts in their jurisdictions. Through these engagements with
more than 50 countries, the US is looking to implement information reporting and withholding tax provisions, commonly
known as the Foreign Account Tax Compliance Act (FATCA).
Enacted in 2010, FATCA aims at checking non-compliance by US taxpayers using foreign accounts. It requires foreign
financial institutions to report to the US tax department information about accounts held by US taxpayers, or by foreign
entities in which they hold a substantial ownership interest.
Concerns have been raised in the past by various foreign banks and other financial institutions about the FATCA
provisions, as it is feared that they might lead to increased compliance costs and might infringe upon the local financial
secrecy laws of the jurisdictions concerned.
An agreement with India will allow the US tax department to seek information from the financial institutions operating
in that country about their clients who are liable to pay tax in the US. In a statement, the US Treasury Department said
last night it has engaged with more than 50 countries and jurisdictions around the world to improve international tax
compliance and to implement FATCA provisions.
“The jurisdictions with which Treasury is working to explore options for inter-governmental engagement include
Bermuda, Brazil, the British Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon, Luxembourg, Romania,
Russia, Seychelles, Sint Maarten, Slovenia, and South Africa,” it said.
The US Treasury has already concluded pacts with the UK. The jurisdictions with which it is in process of finalizing an
agreement or it hopes to conclude negotiations by year-end include: France, Germany, Italy, Spain, Japan, Switzerland,
Canada, Denmark, Finland, Guernsey, Ireland, Isle of Man, Jersey, Mexico, the Netherlands, and Norway.
“Jurisdictions with which Treasury is actively engaged in a dialogue towards concluding an intergovernmental agreement
include: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea, Liechtenstein,
Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, and Sweden,” the Treasury said.
Negotiations with many of these jurisdictions are expected to be concluded by the year-end, it said. “By working
cooperatively with foreign governments and financial institutions, we are intensifying our ability to combat tax evasion
while minimizing burdens on financial institutions,” Treasury Assistant Secretary for Tax Policy Mark Mazur said.