Lok Sabha Question No. 1313 (UNSTARRED), answered on 2018-02-09
Subject: Offshore Tax Havens
Ministry: FINANCE
Asked by: KALIKESH NARAYAN SINGH DEO

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA UN-STARRED QUESTION No. 1313 TO BE ANSWERED ON FRIDAY, THE 09 th   February, 2018/ Magha 20,1939 (Saka)

## Offshore Tax Havens

## 1313. SHRI  KALIKESH  N. SINGH DEO:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  according  to  Paradise  Papers  as  many  as  714  Indians  including  corporate chiefs,  politicians  and  celebrities  have  been  involved  in  business  dealings  in offshore tax havens and if so, the details thereof;
- (b)  whether  the  Government  has  directed  any  probe  to  be  conducted  into  the  media reports relating to the hidden business dealings of Indians in the offshore law firm and if so, the details thereof;
- (c) whether  the Government has contacted the offshore law firm of Bermuda to disclose the holdings of the Indians and if so, the details thereof;
- (d) whether  the Government has set up any committee to investigate into the concerned matters and if so, the details of the findings and
- (e)  whether the Government is facing resistance and non-cooperation by many foreign countries and such entities and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a), (b), (c), (d)

On November  6,  2017  and  on  subsequent  dates  the International Consortium  of Investigative  Journalists  (ICIJ),  a  Washington  based  organization  and  their  collaborating newspapers across the world, released what they called 'Paradise Papers', containing details of offshore  entities  set  up  by  two  law  firms  M/s  Appleby  and  Asiaciti  spread  across  19  tax havens/foreign jurisdictions. The list of Indians in Paradise Papers is publicly available on the ICIJ website.

The ICIJ has put a caveat on its website (https://offshoreleaks.icij.org) by mentioning that it should not be assumed that everyone who appears in the database is involved in tax avoidance or evasion and there are legitimate reasons to create a company in an offshore jurisdiction and many people declare them to their tax authorities when that is required.

On the same day i.e. 6/11/2017, Government reconstituted the Multi Agency Group (MAG) comprising members of Central Board of Direct Taxes (CBDT), Enforcement Directorate (ED), Reserve  Bank  of  India  (RBI)  &  Financial  Intelligence  Unit  (FIU)  with  Chairman,  CBDT  as convener,  to  coordinate  and  monitor  expeditious  investigation  in  cases  emanating  out  of Paradise Papers by each member organization.

The ICIJ database on Paradise Papers does not contain any financial details including the bank  account  information.  The  investigations  in  such  cases  involve  sending  Exchange  of information (EOI) references in deserving cases, to respective foreign jurisdictions.

The  investigations  in  Paradise  papers  are  being  carried  out  earnestly.  The  member investigating  agencies  under  aegis  of  MAG  will  use  the  provisions  available  under  the respective  statutes  administered  by  them  to  investigate  the  matter.  Questionnaires  and summons under  section 131 of  the  Income  Tax  Act,  1961,  have  been  issued  in  appropriate cases by the Income Tax Department.

(e) Law Enforcement Agencies concerned have taken up investigation into specific allegations. Such  investigation,  wherever  required,  includes  making  requests  to  the  foreign  jurisdictions concerned for sharing specific information/evidence, in accordance with provisions of treaties/agreements which India may have with such jurisdictions. The sharing of information is guided  by  the  provisions  of  such  treaties/agreements  as  also  domestic  laws  of  respective jurisdiction. As investigation in Paradise papers is at preliminary stage, further inference/course of action depends upon outcome of investigation in respective cases.