Government forms Multi Agency Group to probe Pandora Papers cases linking wealthy Indians with tax heavens

New Delhi, Oct 4 (Agency) Acting upon ‘Pandora Papers’ reports linking dozens of wealthy Indians with tax heavens, the government on Monday tasked a Multi Agency Group headed by CBDT Chairman to monitor the investigation in the case. Headed by Central Board of Direct Taxes (CBDT) Chairman, the Multi Agency Group would have members from Enforcement Directorate (ED), RBI and Financial Intelligence Unit (FIU). International Consortium of International Journalists (ICIJ) has come out with 2.94 terabyte data trove that exposes the offshore secrets of wealthy elites from more than 200 countries and territories including India. Several Indians including celebrities, business tycoons and industrialists figure in the list of Indians in the so-called Pandora Papers. The ICIJ investigation is based on a leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations and other entities in low or no-tax jurisdictions.

“The government has taken note of these developments. The relevant investigative agencies would undertake investigation in these cases and appropriate action would be taken in such cases as per law. With a view to ensure effective investigation in these cases, the government will also proactively engage with foreign jurisdictions for obtaining information in respect of relevant taxpayers/entities,” a CBDT press release said. The Government of India is part of an Inter-Governmental Group that ensures collaboration and experience sharing to effectively address tax risks associated with such leaks. Following similar such leaks in the Panama Papers and Paradise Papers, the Government had enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with an aim to curb black money, or undisclosed foreign assets and income by imposing suitable tax and penalty on such income. “Undisclosed credits of Rs 20,352 crore approximately (status as on September 15, 2021) have been detected in the investigations carried out in the Panama and Paradise Papers,” the CBDT said.