I-T crackdown on undisclosed Swiss account holders

Discussion in 'Politics & Society' started by SHASH2K2, Nov 1, 2011.

  1. SHASH2K2

    SHASH2K2 New Member

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    NEW DELHI: In a first of its kind crackdown against those stashing unaccounted wealth overseas, the income tax department has launched an offensive against politicians and industrials who had parked money in HSBC Bank, Geneva.

    Under pressure to act against black money and money laundering, the tax department has conducted at least 50 searches over the last two months. The move follows receipts of details regarding 700 bank accounts from the French government.

    The list of those under the lens includes a top Mumbai-based industrialist who during questioning admitted to having family accounts in HSBC, Geneva with deposits totaling more than Rs 800 crore. Summons have also been issued to three Members of Parliament (MPs) from Haryana, Uttar Pradesh and Kerala to appear for questioning at the Delhi office of I-T department's recently-set up Directorate of Criminal Investigation (DCI). The MPs would be asked to explain the source of funds in the Geneva accounts.

    In addition, recovery of over Rs 300 crore has already been made from several evaders, although some of those whose names figured on the list have refused to admit to having Swiss bank accounts. But unwilling to give up in the face of mounting scrutiny from the courts, the tax department is also making enquiries overseas to get details of nearly 300 cases of undisclosed wealth.

    A senior finance ministry official told TOI that looking at the gravity of the cases and their overall impact, the government has handed over the entire investigation to the Delhi office of DCI. This will also help prosecute those accused of parking black money in tax havens.

    Unlike Liechtenstein, where the tax department levied penalties amounting to around around Rs 25 crore against some 18 persons whose names were shared by German authorities, this time the government intends to invoke stringent provisions of the I-T Act to set a precedent. This could mean that those found guilty of evasion could not just face monetary penalty but also end up spending between five and ten years behind bars.

    As part of the assault on tax evasion and money laundering, the government has asked the Central Board of Direct Taxes ( CBDT) to disallow any compounding of penalty and instead go for prosecuting the accused, something the I-T department had fought shy of in the past.

    So far, the accused were only tried under Prevention of Corruption Act, and even that was limited to public servants. The I-T Act was merely treated as civil law and tax evaders were let off after they coughed up penalty.

    Besides these account details, the Income Tax is in possession of nearly 10,000 pieces of information on high-value suspicious transactions undertaken by Indians overseas. Investigations have started in all these cases and references have also been made to enforcement agencies abroad to seek more details.


    I-T crackdown on undisclosed Swiss account holders - The Times of India
     
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  3. pmaitra

    pmaitra Moderator Moderator

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    Am I safe to guess that India will get those French aeroplanes for MMRCA?
     
  4. SHASH2K2

    SHASH2K2 New Member

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    looks like your guess is as perfect as it can be.
     
  5. SHASH2K2

    SHASH2K2 New Member

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    [h=1]Black money: 782 offshore accounts being probed[/h]
    New Delhi: The Income Tax department is looking at 782 Indian accounts in HSBC Geneva for suspected black money. Sources said a probe into some of the Indian account holders with over Rs 3000 crores in deposits are being probed.
    The list was not officially given by the Swiss government, added the sources.
    Finance Minister Pranab Mukherjee says the government will reveal more foreign banks when there is enough information from the investigation.
    On being asked if the Finance Ministry received some names of MPs and industrialists regarding black money in the Swiss bank, Pranab said, "When the information comes investigation starts and matter comes to the court. As per the existing treaty terms, we can review the names only then in the case of prosecution by the I-T department."
    Sources said the list was passed on by the French Government which got the list through unofficial sources and decoded the list. It had names of account holders from many countries including India. The list contains details upto the year 2009.
    The unofficial list has account names, number, passport details of the account holder and the amount. Sources told CNN-IBN that the Finance Minister in a meeting on July 8, 2011 asked for a preliminary investigation into these accounts and the accounts holders.
    India, according to the Finance Ministry, has so far received over 9,900 pieces of information from several countries regarding suspicious transactions by Indian citizens, which are now under different stages of processing and investigation.
    The Department of Criminal Investigation will initiate legal proceedings in several cases in the next few months, sources said, adding that the cases would be dealt with under criminal provisions of the IT Act.
    In a number of cases being probed by the DCI, the department plans to conducts searches and surveys for obtaining additional information.



    Black money: 782 offshore accounts being probed - India News - IBNLive
     
  6. SLASH

    SLASH Senior Member Senior Member

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    Will Swiss government just give away their major source of income? Not likely without a fight. The lower strata account holders will be given up. But the bigwigs will survive.
     
    maomao likes this.
  7. SHASH2K2

    SHASH2K2 New Member

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    many of these account holding reports were with investigating agencies for quite some time . what took them so long to act. giving them a chance to delete all traces of money and come clean. :sad:
     

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