Multi-Agency Group for investigation of Foreign Asset Cases

July 26, 2022

Indian Government has set up a “Multi-Agency Group for investigation of Foreign Asset Cases”. The Group comprises of representatives from various enforcement Agencies and Organizations. It will involve in the investigation of various categories of foreign asset cases such as Paradise paper leaks, Panama paper leaks, and Pandora paper leaks.

The Multi-Agency Group was set up in the light that;

No official estimate has been there with the government, regarding the money deposited by Indian citizens and companies in Swiss banks.
As per media reports, Indian funds in Swiss Banks have increased in 2021, against the 2020.
These deposits do not indicate the quantum of black money, which is held by Indians in the Swiss Bank.

In the recent times, Government of India has taken several proactive measures to tax the undisclosed foreign assets and income;

In HSBC Case, government has brought over 8468 crore rupees to tax. It has also imposed penalty of over 1294 crore rupees.
Assessments has been completed in 368 cases, in accordance with Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. This accounted for tax demand of more than 14,820 crore rupees.
Government disclosed 648 undisclosed foreign assets of worth Rs 4164 crores in one-time three months compliance window. This window was closed on September 30, 2015. Disclosures were made under the stated act. Government was collected 2476 rupees through tax and penalty in these cases.

India has been engaging proactively with Switzerland, in a bid to get information in relevant cases under Double Taxation Avoidance Agreement between both the countries.

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