|
| Par panel wants govt to track black money used for terrorism |
| Press Trust of India / New Delhi Jan 28, 2011, 20:04 IST |
|
A Parliamentary panel has asked top officials of the Finance Ministry track the trail of black money used to fund acts of terror in the country.
The Parliamentary Standing Committee on Finance also wanted the ministry to give clarification on the necessity to have a non-disclosure clause in the international treaties regarding exchange of banking information with various countries.
The panel, headed by BJP leader Yashwant Sinha, wanted the Finance Ministry and the Directorate of Revenue Intelligence to evaluate the quantum of black money stashed in foreign banks and ascertain how much has been routed back to the country through FDI channels from small island nations.
Revenue Secretary Sunil Mitra, Central Board for Direct Taxes (CBDT) Chairman Sudhir Chandra and Enforcement Directorate Director Arun Mathur were among the officials who appeared as witness before the Committee yesterday.
The panel members refused to accept the contention of the officials that the names of black money holders could not be disclosed because of taxation pacts with other countries.
Earlier this week, Finance Minister Pranab Mukherjee had said the names could not be revealed at this stage due to international commitments.
He had said that the names could only be disclosed when the Income Tax Department started prosecution and that even he did not know the names. He had said if names were revealed at that stage, no other country would ever give information to India in these matters.
The members also voiced concern over the parallel economy being run using black money and wanted thorough investigation into the funds routed as investment through small islands like Mauritius.
The ministry officials also told the Committee that double taxation avoidance agreements (DTAAs) were being amended.
They told the members that negotiations on 10 new tax information exchange agreements, with Bahamas, Bermuda, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Monaco, Saint Kitts & Nevis, Argentina and Marshall Islands, out of 22 identified jurisdictions have been completed.
The interim recommendations of BJP Task Force in 2009 had estimated the amount of black money between $500 billion and $1,400 billion. Mukherjee said these estimations were based on unverifiable assumptions and approximations.
Last week, the Supreme Court had criticised the government on its handling of the black money issue and its reluctance to disclose the name of Indians who had stashed their illegal money in LGT Bank of Liechtenstein.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
