The government has made the first move to home in on individuals and entities who have stashed away black money in one of the offshore banks.
The Central Board of Direct Taxes (CBDT) has sent notices to at least 50 individuals figuring among a list of Indians who hold accounts with the LGT Bank, Leichtenstein, a tax haven which borders Germany.
“We have sent notices. Whatever action that can be taken under law would follow,” CBDT chairman SSN Moorthy told ET. The tax authorities have sought information on the source of the money lying in the overseas bank and whether the account holders have paid tax on the amounts.
The list, provided by the German government, reportedly contain the names of some prominent Indian businessmen and industrialists. However, the Indian government is under obligation not to make the names public as they were provided under the Indo-German Double Taxation Avoidance Agreement (DTAA).
The information exchanged under DTAA is confidential, but the government is free to act upon the information.
According to international reports, wealth stashed away by Indians in offshore banks could be $1-1.5 trillion. Tax Justice Network, an organisation that works towards fair taxtreatment, says the wealth concealed in tax havens across the world at between $11-12 trillion. Indian IT laws have provisions to prosecute a taxpayer who refuses to pay tax after a crystallised tax demand.
CAclubindia
