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‘Fair and Lovely’ scheme launched to convert black money into white: Rahul Gandhi

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Rahul-Gandhi

New Delhi: Congress vice president on Wednesday launched a scathing attack on the Narendra Modi government, saying it launched a “‘Fair and Lovely Yojana’ to convert black money into white money”.

Speaking in the Lok Sabha, Gandhi said: “Nobody who has black money will be jailed under Modi’s ‘Fair and Lovely’ scheme. All those who have black money can make it white under this scheme.”

Gandhi was participating on the discussion on the motion of thanks to the President on his address to the joint sitting of parliament’s two houses, marking the beginning of the budget session.

He hit out at Prime Minister Narendra Modi: “Modi ji had promised that he will put people with black money behind bars, now they have come up with way to save those people.”

“I was shocked to see Finance Minister Arun Jaitley launching such scheme.”

He said the prime minister failed to fulfil his poll promise of bringing the black money from foreign countries.

Gandhi also raked up the issue of suicide of Dalit research scholar Rohith Vemula and said the prime minister neither called up his mother nor did he speak on the issue.

Gandhi slammed the prime minister for his silence over the violence done with students and media persons at a Delhi court.

“Why were you silent, Modi ji, when journalists, teachers and students were beaten,” he said.

On the ongoing Jawaharlal Nehru University row, Gandhi said: “I had heard (JNUSU president) Kanhaiya’s whole speech, not a word in his speech was anti-national.”

He said the government could not “crush the JNU” or the “poor people of the country”.

(Agencies)

Blackmoney disclosure: Govt revises amount higher at Rs 4147cr

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Black money

New Delhi: Government collected Rs 4,147 crore during the 90-day black money disclosure compliance window, which is higher than the previously announced amount of Rs 3,770 crore, Revenue Secretary Hasmukh Adhia said today.

Adhia said while the total number of disclosures is 638 as stated last week, the total illegal foreign assets brought to book stands at Rs 4,147 crore.

The government’s total tax receipt from the black money declared during the window will be Rs 2,488.20 crore.

The government had on October 1 declared that a total of Rs 3,770 crore of black money was declared during the compliance window. This, he said, was based on preliminary count of the declarations made.

After taking into account the declarations that came in envelops, the total number comes to Rs 4,147 crore, he said adding the envelops had been counted but the declarations in them were not reflected in the October 1 figure.

The one-time 90-day compliance window provided to holders of undeclared foreign assets ended September 30. It provided an opportunity to foreign assets holders to declared assets, pay a total of 60 per cent tax and penalty and escape stringent provisions of the new black money law.

He said under the Foreign Account Tax Compliance Act (FATCA), signed with the US, India has already started getting information. “Wealth of information has come from US,” he said. He said as many as 132 prosecution in 43 cases out of the HSBC Swiss list have been filed.

(PTI)

Black money: Government collects Rs 3,770 cr from 638 people

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Black money

New Delhi: Nearly 638 people have come out in open and have used a one-time compliance window for disclosing black money. An amount summing to Rs 3,770 crore has been declared, according to CBDT Chairman Anita Kapur on Thursday.

Kapur said that those who have declared have until December 31st, 2015 for payment of taxes and penalty.

The rush of black money declarants peaked at the Income Tax office in Delhi on Wednesday as the deadline for disclosure of wealth stashed abroad expired on September 30.

It added that tax at the rate of 30 per cent and penalty at the rate of 30 percent is to be paid by December 31, 2015.

The window, created under the new anti-Black money Act, saw a hectic rush on the last day yesterday as declarants made a beeline to meet the deadline at the only I-T office designated here for the task.

“Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Act) has been enacted to deal with the menace of black money stashed abroad.

“The Act also provided for a compliance window for a limited period to persons who have undisclosed foreign assets which they had not disclosed for the purposes of Income-tax so far,” the statement added.

The compliance window opened on 1st July, 2015 and was till 30th of September 2015.

A stream of declarants, including from far off places like Rajasthan and Karnataka, walked into the only designated office in Delhi to make declarations before the closure of the one-time black money ‘compliance window’.

Long queues were seen throughout the day of people, mainly those who appeared to be Chartered Accountants or representatives of those who have undisclosed money and wealth abroad.

(Agencies)

Black money: Upto Rs 15 lakh award for info against defaulters

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Black money

New Delhi: The Income Tax department has brought out new guidelines to award secret informers providing actionable clue about “untraceable” assesses who owe huge taxes and money to government including in TDS and self assessment tax category.

The department last week issued a set of new instructions to all its offices in the country stating any person who provides credible inputs against a declared defaulter would be rewarded a 10 per cent booty of tax realised from such an entity, but upto a maximum limit of Rs 15 lakh.

The new guidelines, effective from the last and current financial year, have been issued by the CBDT keeping in mind the huge challenge of tackling black funds in the country and at the same time boosting the revenue kitty.

The informant, whose identity would be kept secret except in cases where law requires, will just have to give inputs “supported by facts and documents”.

The department has, at the same time, made it clear that no “speculation, vague or inputs of general nature and educated guess” will be entertained in this regard.

The guidelines state that any information about such assesses who are either not traceable or have stated inadequate assets to pay due taxes will be covered under the scheme brought out after high-level deliberations in the government including with the Special Investigation Team on black money.

For the first time, the guidelines accessed by PTI state, any default of Tax Deducted at Source (TDS) or self assessment tax by an entity for over 6 months and about which the I-T department has publicly declared the default, will be covered under the scheme for ‘informers’ or people in the know to inform the taxman about.

“Any specific or credible information of the whereabouts or assets of the person, on or after March 31, 2015 which results in the collection of taxes, penalities, interest or other amounts not exceeding 10 per cent of the tax realised which is directly attributable to the information or documents supplied by the informant, subject to a ceiling of Rs 15 lakh” will be covered under the new guidelines.

A provision has also been kept to enhance this reward in exceptional cases after the approval of the Central Board of Direct Taxes (CBDT), the apex policy making body of the tax department.

The I-T department, beginning this year, had also begun the practise of ‘naming and shaming’ big tax defaulters in the country by publishing their names, addresses and income tax dues in newspapers.

Till now, a senior officer in the department said, names of about 50 such large defaulters have been publicised who have a pending tax liability of close to Rs 2,000 crore.

“More such names, including those under the TDS and self assessnent tax category, are in the offing,” the officer said.

The department has been told to ensure the secrecy of the indentity of the informer by allotting a unique number to them for communication.

The department, the officer said, is leaving no stone unturned to mount additional measures in combating stash funds of Indians both within and outside the country and hence these newer strategies and methods are being undertaken.

(PTI)

Black money: Names of Yash Birla, four others with Swiss bank accounts disclosed

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Yash Birla

Berne: Industrialist Yash Birla, along with two Mumbai-based individuals behind City Limousines scam, are among five Indian nationals with Swiss bank accounts whose names have been made public in Switzerland’s official gazette with regard to ongoing tax probes against them in India.

The others are Gurjit Singh Kochar, son-in-law of late realty baron Ponty Chadha, and a Delhi-based businesswoman Ritika Sharma.

The names of these five “Indian nationals” have been made public in Switzerland’s Federal Gazette with regard to details sought about them by the Indian authorities.

Among these, some details have already been shared by the Swiss Federal Tax Administration (FTA) with India including about Birla and Sharma of Blessings Apparel.

These are in addition to the two other Indians – Sneh Lata Sawhney and Sangita Sawhney – whose names have also been made public in similar manner for being probed by the Indian tax authorities.

In the case of Sayed Mohamed Masood, being probed for a major ponzi scheme run from Mumbai through City Limousines, some details were shared by the Swiss authorities in the past. His accounts were also frozen a few years ago following a request from the Enforcement Directorate.

Fresh details about him and about Chaud Kauser Mohamed Masood have been sought by the Indian authorities, as per the notifications published in Switzerland’s official gazette.

There was no reply to queries mailed to Birla’s office, while repeated calls to Sharma did not elicit any response. Earlier also, when Birla’s name had come out in a leaked HSBC list of Swiss bank accounts, he had declined to comment.

A family representative declined to comment on the notification issued about Kochar, who is believed to be outside India. He is facing probe by the Income Tax Department and other agencies for quite some time. No contact details were available for comments from Masoods.

Making public these names, the Swiss Federal Tax Administration (FTA) has asked them to file an appeal within 30 days before the Federal Administrative Court if they do not want their details to be shared with the Indian authorities under their ‘mutual assistance’ treaty on tax matters.

In the case of Birla and Ritika Sharma, whose details have been already shared by the Swiss authorities, the notifications also mention their addresses in India, but the information given to India has been withheld from the gazette.

No further details – other than their names and dates of birth – were made public for other “Indian nationals”.

Similar is the case for other foreign nationals including the British, Spanish and Russians. In case of American and Israeli citizens, their full names have been withheld and they have been identified by their initials and dates of birth. At least 40 such ‘final notices’ have been published in the Swiss Federal Gazette so far this month, while more such names are expected to be published going forward.

The alleged stashing of wealth by Indians in Swiss banks has been a matter of great debate in India. The Indian government has been pushing the Swiss authorities for a long time to share information on the suspected tax evaders, while Switzerland has shared some details in cases where India has been able to provide some independent evidence of suspected tax evasion by Indian clients of Swiss banks.

While there was no reply to queries mailed to the FTA spokesperson in this regard, these names are being published in the Swiss Federal Gazette in the backdrop of the Swiss government being flooded with requests on suspected black money hoarders in Swiss banks from various countries including India.

As per these notices, the concerned persons can file an appeal before the Federal Administrative Court within 30 days, while providing the reasons and evidence in their support. Through these gazette notices, the Swiss FTA is also looking to give the concerned persons an opportunity to resort to legal remedies. These are the persons about whom foreign governments are requesting information.

As per a report in the ‘Sonntagszeitung’ weekly, the Swiss authorities have been “inundated with requests for assistance” and the nations that wanted to know details about their suspected tax-dodging citizens included “France, Germany, Russia, India and half a dozen other countries”.

“Now, the authority will publish the names of those affected in the Federal Gazette, which is available to everyone on the internet,” it said, while adding that those being named may include “well-known personalities”.

As per the report, banks do not have much interest in contacting such customers as many no more hold the accounts.

It further said that questions have been raised about requests made by India and Germany being based on stolen data.

The report, however, quoted FTA’s Alexandre Dumas as saying, “We are never sure if they are stolen data. However, there is the principle of faith”.

Committing full support to India’s fight against the black money menace, Switzerland last week had said its Parliament would soon consider changes in laws to look into the possibility of sharing information in cases being probed on the basis of stolen data of Swiss bank accounts.

Switzerland’s Economic Affairs Minister Johann Schneider Ammann during his India visit on May 15 said that the Swiss government was sensitive to the fact that the issue of black money was very important for India and needed to be resolved.

“Switzerland has decided to follow international standards, including those framed by OECD, in sharing information and providing assistance to foreign countries probing such cases, but we have to ask our Parliament to make changes in our laws,” he said.

Indian Parliament has recently passed a new black money law under which those found to be stashing illicit funds in foreign locations, including Swiss banks, would face strict penal action, including up to ten years in jail and a penalty of 90 per cent of funds in addition to 30 per cent tax levy.

However, a one-time ‘compliance window’ will be provided before the law comes into force and this would let the persons with foreign assets to come clean by payment of 30 per cent tax and 30 per cent penalty.

(PTI)

Black money: Dossier on 15 entities with government

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BLACK-MONEY

New Delhi: The Supreme Court constituted Special Investigation Team (SIT) on black money has received a new dossier on tax related business information on about 15 entities which have allegedly stashed illicit money abroad.

Work is also “in progress” in various investigation and enforcement agencies regarding 600 suspect names and addresses obtained from abroad by the Central Economic Intelligence Bureau (CEIB).

The information about the dossier is part of a note prepared by the Central Board of Direct Taxes (CBDT) for the SIT.

The note reveals that tax authorities and investigators probing black money cases have decided to hold one-on-one meetings with their overseas counterparts based in tax havens and other countries to “deepen” cooperation in the fight against illicit funds stashed abroad.

The note also says that “certificates of incorporation” of eleven entities listed in the International Consortium of Investigative Journalists (ICIJ) report which were received from two foreign Financial Intelligence Units have been shared with CBDT for further action.

Sources said they have got additional information on about four more entities in this regard. The dossier is said to contain information about the circuitous manner and the route taken by the entities to stash money abroad.

The ICIJ brought out these names early last year while some additional details were published by the global group this year on suspected world entities holding assets and shares in overseas business structures, including those with Indian connections.

(Agencies)

Stiff jail term, 90% penalty for black money abroad

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BLACK-MONEY

New Delhi: The Modi government on Friday unveiled a set of stringent provisions, including a 90% penalty on those who have undisclosed foreign assets and income overseas as it introduced a Bill to deal with black money stashed abroad. This will be above the 30% levy on the value of assets or income that will be imposed.

But those who want to avoid the hefty penalty will be given the option to pay 30% penalty of the value of undisclosed assets and avoid prosecution, the Undisclosed Foreign Income and Assets Bill introduced in the Lok Sabha proposed. Although the government wants the law to be active from April 2016, it has not specified how long the one-time compliance window would be open. The Bill has also detailed safeguards to prevent any misuse of the stiff provisions by tax authorities.

Apart from penalty, the bill provides imprisonment of up to 10 years for concealment , non-disclosure, false declaration as well as abetment. The provision for abetment can put financial advisors and chartered accountants in the crosshairs of the law should they be deemed guilty of cooking the books.

“It’s not an amnesty scheme because under amnesty you only pay tax, and no penalty. Here the requirement is to pay tax at 30% and equivalent 30% as penalty. The intention of the government is not to give a soft landing facility to anyone. The one-time compliance opportunity is to enable such people who have hidden assets abroad to come clean and avail of the opportunity. It is not a revenue mobilization measure,” said revenue secretary Shaktikanta Das.

Asked about the time frame of the compliance window, Das said it would be notified after the passage of the bill.

The Bill, was announced by finance minister Arun Jaitley in his budget speech on February 28, as the BJP government moved to smother the criticism of going soft on black money, a key poll plank during the 2014 general elections. The Bill is the latest move to get money stashed overseas back into India, even as the tax department has also asked its officers to focus on illegal wealth within the country as well.

Apart from the penalty, the legislation also lists a 10-year jail term for “willful attempt to evade tax”. Anyone who possesses or controls documents or books of accounts with false entries or statement, willfully omits entries or statements in the papers, or takes steps that result in tax evasion will be treated as willful evader. “In the prosecution proceedings, the willful nature of the default shall be presumed and it shall be for the accused to prove the absence of the guilty state of mind,” the government said.

Further, the Bill has proposed imprisonment of six months to seven years for failure to provide details of foreign assets and income, or interest in a overseas entity, in tax returns as well as for making false statement. A similar term is proposed for those abetting making of false statement, a move that will impose a burden on chartered accountants and financial advisors who are often involved with overseas transactions. Second or subsequent offences would entail imprisonment of three to 10 years and fine of Rs 25 lakh to Rs 1 crore, the Bill proposed.

For companies, the Bill has proposed prosecution and penalty for directors, managers, officers or secretaries in-charge of the company or involved with the decision. Failure to disclose details in tax returns will also result in a penalty of Rs 10 lakh.

The government has, however, suggested that those with minor balances in foreign accounts, which may have been missed due to oversight, be exempted from the penalty or prosecution provisions. As a result, it has fixed Rs 5 lakh as the threshold.

The legislation has generated some anxiety over possible misuse by tax department officials. As a result, the Bill has suggested that prosecution should only be cleared by a commissioner-rank officer. Similarly, in case of penalties of over Rs 1 lakh, a joint commissioner of income tax officer has to approve it.

But those who have been served a notice for penalty need to deposit the amount before they contest the amount in a court. The Bill also empowers the government to enter into agreements with foreign countries for information exchange, tax recovery as well as to help individuals to avoid paying taxes twice.

(Agencies)

Cabinet approves Bill on black money

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BLACK-MONEY

New Delhi: To check black money menace, the Cabinet today approved a new Bill that would give more powers to the tax department in tracking illicit wealth stashed abroad and provide for strict penal actions for such offence.

Sources said that the Cabinet approved the new Bill this evening and it could be presented in Parliament during the ongoing session.

Finance Minister Arun Jaitley had announced in his Budget speech on February 28 that the government would bring in a comprehensive law to check the black money menace by providing for a jail term of up to 10 years for hiding foreign assets and up to 300 per cent penalty.

Jaitley had also said that a host of other tough measures including dis-incentivising of cash dealings in Real Estate and other transactions would be put in place.

Under the proposed law, concealment of income and assets and evasion of tax in relation to foreign assets will be prosecutable with rigorous imprisonment of up to 10 years, Jaitley had said, while adding that the offence will be made non-compoundable and the offenders will not be permitted to approach the Settlement Commission.

As regards curbing domestic black money, the Finance Minister had said a new and more comprehensive Benami Transactions (Prohibition) Bill would be introduced in the current session of Parliament.

He had also proposed to amend the Income-tax Act to prohibit “acceptance or payment” of an advance of Rs 20,000 or more in cash for purchase of immovable property.

(PTI)

Black money: Names of account holders revealed

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The information had been given by HSBC itself following negotiations between the bank and Indian Income-Tax authorities.

The information had been given by HSBC itself following negotiations between the bank and Indian Income-Tax authorities.

New Delhi: A Delhi-based newspaper on Monday revealed names of Indians holding black money accounts abroad.

The list includes names of businessmen, politicians and their families.

This revelation comes ahead of the government’s decision to reveal names of 60 Indians and entities holding black money accounts as reported in the HSBC bank’s Geneva branch list.

Armed with information received about its citizens holding secret accounts in Swiss banks, India has been seeking details from Switzerland, but most of these requests were being stonewalled by the European nation on the ground of those being based on stolen data.

Here’s the list published by The Indian Express newspaper on Monday: http://indianexpress.com/article/india/india-others/the-list-whos-who-how-much/

Anna Hazare attacks Modi govt on black money repatriation

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anna-hazare

Ralegan Siddhi: Anti-corruption campaigner Anna Hazare today attacked the Narendra Modi government for its ‘failure’ to bring back black money stashed in tax havens abroad and said people will teach it a lesson for the “fraud” perpetrated on them.

The 77-year-old Gandhian also refused to be drawn into the subject of political slugfest going on between his two former proteges– Aam Aadmi Party leader Arvind Kejriwal and BJP’s Kiran Bedi– in the Delhi assembly elections.

“People were promised during Lok Sabha elections that black money will be brought back within 100 days (of BJP forming its government), that Rs 15 lakh will be deposited in the accounts of every citizen, but not even Rs 15 have come.

“People have become aware now of the fraud perpetrated on them. They will teach a lesson (to the BJP-led government) the way they taught one to Congress. The masses have awakened after 2011 movement against corruption,” he told NDTV in an interview.

Asked about his views on Kejriwal and Bedi, both his proteges in the India Against Corruption campaign, crossing swords for chief ministership of Delhi, the anti-graft crusader said he would not talk about politics.

“I don’t want to go into these things. Ask me about other things, ask me about the country. An Arvind or a Kiran is not important,” he said.

Questioned whether he was angry with them for entering politics against his advice, Hazare said, “No,no. The question of getting angry arises when you have expectations that are not fulfilled. I don’t have any expectations from anybody, so where is the question of anger?”

He also refused to hazard a guess about who– Kejriwal or Bedi– will emerge triumphant in the polls.

“I don’t know. Ask them,” he retorted when persistently questioned about his views on Delhi elections and asked, “Why are you pushing me into the cesspool?”

Hazare said no change can be brought through party politics and that there was no mention of politics in the Indian Constitution.

“No change can be brought through party politics. The Constitution also does not mention politics. It says any Indian citizen can contest elections. When 543 good individuals win and choose the Speaker of Lok Sabha and the Prime Minister and run the country, change will come,” he said.

Hazare, however, acknowledged that the task was daunting and will take long to achieve.

“It will take 10-12-15 years. When people will awaken and reject party politics and choose 543 good people as their representatives, then true democracy will come. People made sacrifices for independence but there has not been any struggle for democracy,” he said.

(PTI)

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