No detail available on offshore shell companies owned by Indians: Govt

NEW DELHI, MARCH 27: Amid Congress leader Rahul Gandhi upping the ante on “offshore companies linked to the Adani group”, the government told the Rajya Sabha that data or details regarding offshore shell companies owned by Indian citizens are not available and an offshore shell company is not defined in the Acts administered by the Ministry of Finance.

Minister of State for Finance, Pankaj Chaudhary said, “It is submitted that an offshore shell company is not defined in the Acts administered by the Ministry of Finance. Data/details regarding offshore shell companies owned by Indian citizens are not available.” He was replying to a question by CPM M P John Brittas on the details of offshore shell companies whose Ultimate Beneficial Ownership (UBO)

is held by Indian citizens, and the action taken by the government.

The minister, however, said the government has undertaken a few exchanges of information mechanism for the administration of taxation and enforcement laws for various purposes which may include offshore companies.

The minister also said that “the Directorate of Enforcement takes necessary action as per the provisions of the relevant Acts whenever there is any contravention under FEMA, and an offense under PMLA, or a warrant of arrest is issued by the Magistrate or Court after taking cognizance of any offense appended to  Fugitive Economic Offenders Act, 2018 (FEOA) and where the amount involved is Rs 100 crores or above, provided the accused has gone outside India.”

Replying to the question on the actions taken against those Indian citizens whose names were revealed through Panama Paper, Pandora Paper, Paradise Paper, and other leaks, the government said that more than 250 India-linked entities have been identified in Pandora Paper Leaks, It also stated that undisclosed income of more than Rs 13,800 crore has been brought to tax (as on December 31) under the Panama and Paradise paper leaks cases.

On deposits made in unreported foreign bank accounts in HSBC cases, the minister said that undisclosed income of more than Rs 8,468 crore has been brought to tax, and a penalty of over Rs 1,294 crore has been levied. “As of 31.12.2022, assessments under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 have been completed in 408 cases, raising a tax demand of over Rs 15,664 crores,” it said.

Offshore shell firms not defined in Acts: Minister

Minister of State for Finance, Pankaj Chaudhary said, “It is submitted that an offshore shell company is not defined in the Acts administered by the Ministry of Finance. Data/details regarding offshore shell companies owned by Indian citizens are not available.” He was replying to a question by CPM M P John Brittas on the details of offshore shell companies whose Ultimate Beneficial Ownership (UBO) is held by Indian citizens, and the action taken by the government.

-TNIE