E-Paper
Panama Papers: First report ready, 360 summoned, 40 untraceable
The first report of the multi-agency team, set up to investigate allegations made by the International Consortium of Investigative Journalists (ICIJ), popularly called the Panama Papers, is ready. The probe team has formed 400 cases involving Indian entities and individuals. Summons have been issued to 360 Indian entities and individuals while 40 are untraceable, said a top officer in the government.
The first report of the multi-agency team, set up to investigate allegations made by the International Consortium of Investigative Journalists (ICIJ), popularly called the Panama Papers, is ready.
The probe team has formed 400 cases involving Indian entities and individuals. Summons have been issued to 360 Indian entities and individuals while 40 are untraceable, said a top officer in the government.
Of the cases investigated so far, 180 have owned up to making investments outside India, and the accounts of 55 have been verified so far, a senior government official told HT. These 55 individuals have claimed disclosure of the investments outside India in their income tax returns. “We have verified these accounts,” he added.
“The first report is ready, we are trying to tie up the last loose ends, before the report is submitted,” the source said.
Panama Papers refer to leaked documents that showed prominent businessmen and celebrities around the world used a Panamian law firm, Mossack Fonseca, to route their wealth outside their countries.
“The first report is almost ready, we are trying to tie up the last loose ends, before the report is submitted,” the source told HT.
To verify information provided by those named in the Panama Papers, the tax department has written to 12 countries, including Panama, British Virgin Islands, Singapore and UAE, seeking more data under various information exchange treaties.
“Just a mention of a name does not mean that it is illegal routing of money. Money can be remitted abroad or companies can be formed in foreign countries, if proper permissions have been taken,” the source said.
The leaked files from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca, highlighted ways in which the rich exploited secretive tax regimes.
During the investigation, the probe team has also raided 15 entities, since evidence showed there could be “foul play”.
The Washington based ICIJ (International Consortium of Investigative Journalists) had earlier clarified on its website that it should not be assumed that everyone whose name appeared in Panama Papers was involved in tax evasion.
The multi-agency probe team, set up in April in the wake of the media coverage on the Panama Papers leak, comprises members from the Central Board of Direct Taxes, Foreign Tax and Tax Research Division of CBDT, Enforcement Directorate, Reserve Bank of India and Financial Intelligence Unit.
Finance minister Arun Jaitley has said the Union government would take all necessary action against those found holding illegal offshore accounts.
