Friday, August 6, 2010

18 Indians hid crores in European bank: FinMin

The finance ministry said on Friday that it has uncovered around Rs 44 crore (RS 440 million) of untaxed money parked by 18 Indian nationals with LGT Bank in the European tax haven of Liechtenstein and have raised a tax demand of Rs 24 crore (Rs 240 million).
"Assessments have been made against total 18 individual cases involving total assessed income of Rs 43.83 crore (Rs 438 million) and total demand of Rs 24.28 crore or Rs 223 million (has been raised)," Minister of State for Finance S S Palanimanickam told the Lok Sabha in a written reply.

"Penalty proceedings for concealment of income have separately been initiated in all these cases," he said.

Palanimanickam, however, did not name the accused.

He said the German tax authorities have provided the Indian government with information regarding accounts held by Indian nationals in the LGT Bank in Liechtenstein.

The details have been provided by the German authorities under the provisions of the Double Taxation Avoidance Agreement between India and Germany concerning exchange of information.

"On the basis of this information, assessment proceedings were reopened and cases were centralised in Chennai, Delhi , Mumbai and Kolkata ," he said.

Though the demand for tax has been raised, retrieving the tax money will take time, as it is most likely that all the cases would go through judicial process, tax officials say.

After tasting initial success, the government has planned to speed up the process of entering into agreements with other countries for seeking information on black money.

India has information exchange agreements under DTAAs with some countries. However, not all of the 79 DTAAs which India has entered have the information exchange clause.

The government has written to as many as 65 countries for amending the DTAAs to insert information exchange clauses as per the OECD (Organisation for Economic Cooperation and Development) norms to help curb tax evasion.

Article 26 in the OECD model tax convention refers to exchange of information related to taxation.

As of now, India has completed negotiations with Bermuda, Switzerland and the Bahamas on amending the bilateral taxation pacts to seek information about funds parked in those nations.

Black money, especially funds parked in tax havens, had become a poll issue in the run-up to the general elections last year, with Bharatiya Janata Party leader L K Advani declaring that if the National Democratic Party came to power, it would retrieve the untaxed money and use it for funding the country's development.

After returning to power for the second straight term, Prime Minister Manmohan Singh had in July last year said the government has already initiated action for getting back black money belonging to Indians from the Swiss banks.

This has been taken from a PTI report which was published in Rediffmail

The Minister of State for Finance, Mr. Palanimanickam, must be naive or think the people are fools to be taken in by his sweet talk.
With around Rs 13.5 lakh crores purported stacked away in Swiss and other banks as per initial reports which came out, only Rs 44 crores have been accounted and he is already patting himself on the bank. With a population of 120 crores, only 18 people have been found who stacked away their money.
The Congress has been the ruling party in India in 40 of the 60 years since independence.
We can safely assume that about Rs 9 lakh crores have been stashed away by Congress people and their cronies.
What an injustice that India is accused of being the 84th most corrupt nation.

No, Mr Palanimanickam, you will have to do much more than you have done and much faster if you expect the people to take you seriously.

Remember, Swami Ramdeo is breathing down your necks to replace all corrupt candidates.

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