5,377 crore tax to be recovered from illegally kept money in Swiss Banks Centre tells Supreme Court


New Delhi 3rd October, 2016 (GPN) : Indians hold about Rs 9,000 crore or 2.18 billion Swiss francs in Swiss Banks at the end of 2015 according to data released by Swiss National Bank.
The overall amount held in Swiss banks by entities from across the world is estimated at around Rs 90 lakh crore.This illegally kept money by the Indians tax evaders has been brought under the tax ambit despite constraints like non-sharing of information by Swiss authorities, the Centre told the Supreme Court today.

The Department of Economic Affairs of the Finance Ministry, in an affidavit, said: “An undisclosed income of approx Rs 9,000 crore (including protective assessment of Rs 1,485 crore) has been brought to tax, on account of deposits made in unreported foreign bank accounts.”

The Centre sought dismissal of a PIL seeking court-monitored probe against Indians whose names have figured in the Panama Papers for allegedly holding bank accounts in foreign nations on the ground that it has already set up a Multi-Agency Group (MAG), comprising officials of CBDT, RBI, Financial Intelligence Unit and ED, to ensure “speedy and coordinated” investigation.

The affidavit, filed by Manu J Vettickan, Deputy Director in the Ministry, said about Rs 1,282 crore has been levied as tax in 159 cases pertaining to concealment of tax due to the government.

“So far 164 prosecution complaints have been filed in 75 cases. The apex court-appointed SIT on black money has been kept updated on the progress in these investigations,” it said, adding that the apex court-appointed SIT on black money is being kept updated on the progress made in these probes.

Dealing with the issue of progress made so far in the probe into the Panama Papers, the Centre said, “till date, five reports have been submitted by the MAG to the government. The SIT on black money is being regularly updated on such issues.”

The Centre lamented that despite best efforts, the Swiss competent authority has not shared any information with India on various grounds including Treaty limitations and their domestic legal barriers.

“The deponent (centre) submits that the alternative method of assisting the tax payer to obtain the information and documents was pursued with the said bank which has led to obtaining of the requisite information/documents in a considerable number of cases…Tax demand of Rs 5,377 crore has been raised which includes demands of protective assessments,” the affidavit said.

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Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.