Rs 24.26 cr tax demand raised, penalty imposed in LGT case

The government has said it has raised a demand of Rs 24.26 crore against Indians whose secret bank accounts were detected in the LGT bank in Liechtenstein.
"With regard to information from the German government regarding Indian taxpayers having accounts with LGT bank in Liechtenstein, assessments have been made against total 18 individual cases, being beneficiaries of the said trusts/ entities, as per provisions of Income Tax Act, 1961," Minister of State for Finance J D Seelam said in a written reply to Lok Sabha on December 6.
"The assessments in these cases resulted in determining total assessed income at Rs 39.66 crore. Total demand of Rs 24.26 crore was raised in these cases. Penalty proceedings for concealment of income have separately been initiated in all these cases. Penalty amounting to Rs 11.94 crore has been imposed at the rate of 200 per cent tax sought to be evaded in nine of the cases. Out of 18 taxpayers, one has passed away and prosecution has been launched against all other 17 taxpayers," he said.

Regarding accounts (of Indians) in one of the Swiss banks, he said "although the tax has not been assessed or raised yet, some persons have voluntarily paid taxes. Action in accordance with the provisions of direct tax laws, including levy of penalty and initiation prosecution, is taken in all such cases after the assessments are completed.