Indian Authorities Report On Probes After Taxpayer Data Leaks

by Mary Swire, Tax-News.com, Hong Kong

07 November 2017

The Indian tax authorities have provided updates into both the ongoing "Panama Papers" investigation and the developing and unconnected "Paradise Papers" revelations.

Following the leak of documents from Mossack Fonseca, the Indian authorities in April 2016 created a Multi-Agency Group (MAG) to facilitate a "co-ordinated and speedy" investigation into potentially non-compliant Indian taxpayers. To date the MAG has submitted seven reports to the Government having analyzed the Panama Papers. In its latest update, it was said "the Panama Papers contained brief particulars of about 426 persons, prima facie, Indians or persons of Indian origin. The Income Tax Department conducted inquiries in all 426 cases, inter alia, through making 395 references to 28 foreign jurisdictions. Based on analysis of the information obtained and investigation conducted, the outcome so far indicates 147 actionable cases and 279 non-actionable cases (non-residents/no irregularities, etc)."

Indian authorities also discussed the so-called Paradise Papers revelations, following the theft of client files from the international law firm Appleby, which have reportedly revealed details about the tax affairs of its clients.

The Government said on October 6 that 714 Indian residents, resident entities, or persons with connections to India were reportedly referenced in these latest leaks.

According to the Income Tax Department, the Paradise Papers contained details of nearly seven million loan agreements, financial statements, emails, trust deeds, and other paperwork dating back nearly 50 years.

In response to the leak, Indian authorities said: "The investigation units of the Income Tax Department (ITD) have been alerted to take note of revelations for immediate appropriate action. It has been reported that many cases of offshore entities are already under investigation on fast track. As soon as further information surfaces, swift action as per law will follow."

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