Govt sets up multi-agency group to probe Indian cases in Pandora Papers leak on hidden wealth abroad

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The Indian Government has set up a Multi Agency Group, headed by the chairman of the  Central Board of Direct Taxes (CBDT) with representatives from CBDT, the Enforcement Directorate, RBI and the Financial Intelligence Unit (FIU) to monitor investigations in cases figuring in the Pandora Papers leaks, according to information provided by the finance ministry on Monday.</p>
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On 3rd October, 2021, the International Consortium of Investigative Journalists (ICIJ) came out with what is claimed to be a 2.94 terabyte data trove that exposes the offshore secrets of wealthy elites from more than 200 countries and territories.</p>
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The finance ministry observed that the names of only a few Indians (legal entities as well as individuals) have appeared so far in the media. Even the ICIJ website (www.icij.org) has not yet released the names and other particulars of all the entities. The website of ICIJ suggests that information will be released in phases and structured data connected to the Pandora Papers investigation will be released only in the days to come on its Offshore Leaks Database.</p>
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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. The Government of India is also part of an Inter-Governmental Group that ensures collaboration and experience sharing to effectively address tax risks associated with such leaks.</p>
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The finance ministry said that earlier following similar leaks in the form of ICIJ, HSBC, Panama Papers and Paradise Papers, the Government has already 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 15.09.2021) have been detected in the investigations carried out in the Panama and Paradise Papers.</p>
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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.</p>