INFORMATION about certain offshore entities reportedly held by
various Indian persons had appeared in media, earlier this year. The information
is attributed to be part of ‘Panama Papers' leaks. The International Consortium
of Investigative Journalists (ICIJ), a Washington based organization which has
reportedly made the revelations pertaining to the Panama Papers, has put a
caveat on its website (www.icij.org) by mentioning that it should not be assumed
that everyone who appears in the Panama Papers is involved in tax avoidance or
evasion and there are legitimate reasons to create a company in an offshore
jurisdiction and many people declare them to their tax authorities when that is
required.
On
April 04, 2016, the Government constituted a Multi-Agency Group, inter alia, for
facilitating co-ordinated and speedy investigationin the cases of Indian persons
allegedly having undisclosed foreign assets and whose names appeared in Panama
Papers leaks. The Group consists of the officers of Investigation Division of
the Central Board of Direct Taxes (CBDT), Foreign Tax & Tax Research
Division of CBDT, Enforcement Directorate (ED), Financial Intelligence Unit
(FIU) and Reserve Bank of India, and its Convener is Member (Investigation),
CBDT.
The
Government has taken necessary measures for expeditious investigation in such
cases including through enhanced international cooperation. The Multi-Agency
Group has so far submitted 6 reports to the Government. The Special
Investigation Team on black money has been kept informed of the progress.
Investigation is at different stages in specific cases. Further course of action
including assessment of undisclosed income, levy of applicable penalties and
prosecution in appropriate cases, depends upon outcome of the investigation in
respective cases. Disclosure of information regarding specific taxpayers is
prohibited except as provided under section 138 of the Income tax Act, 1961 and
section 84 of the Black Money (Undisclosed Foreign Income and Assets) &
Imposition of Tax Act,2015.
This
was stated by Santosh Kumar Gangwar, Minister of State in the Ministry of
Finance in written reply to a question in Lok Sabha today.
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