Informers can get up to 20% of tax evaded: FinMin

Individuals who tip-off the government on tax evaders can get to keep up to 20 per cent of the sum recovered, the government informed Parliament.

"There are guidelines for 'Grant of Awards' to informants who provide information on tax evasion," Minister of State for Finance S S Palanimanickam informed the Lok Sabha today.

In direct taxes, the competent authority may grant reward up to 10 per cent of the extra income and wealth tax levied and actually realised subject to the conditions laid down in the Reward Guidelines, he said.

"So far as indirect taxes are concerned, the informers are eligible for reward up to 20 per cent of the net sale- proceeds of the contraband goods seized and/or amount of duty evaded plus amount of the fine and penalty levied and recovered or at the specific rates indicated," Palanimanickam said.

The reward policy of the government is available in the public domain for encouraging informers to provide information relating to tax evasion.

The development in technology has strengthened the link between informers and government agencies, he said.

"The investigative agencies have become more accessible to the informers through advancement of information technology. These measures have resulted in increase in number of actionable intelligence and consequent detection of tax evasion cases," he added.