Lok Sabha Question No. 4878 (UNSTARRED), answered on 2017-03-31
Subject: Panama Papers
Ministry: FINANCE
Asked by: BALASUBRAMANIAM SENGUTTUVAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UN-STARRED QUESTION No. 4878

## TO BE ANSWERED ON FRIDAY, THE 31 st     MARCH, 2017 CHAITRA 10, 1939 (SAKA)

## PANAMA PAPERS

## 4878.  SHRI B. SENGUTTUVAN :

## Will the Minister of FINANCE be pleased to state:

- (a) whether according to Panama Papers as many as 500 Indian celebrities, film stars and industrialists have reportedly stashed away unaccounted black money in the offshore acquisitions of Panama Oil company and if so, the details thereof;
- (b) whether  the  Government  has  directed  any  probe  to  be  conducted  into  the media reports relating to the offshore acquisitions of Indians in Panama;
- (c) if so, the details thereof; and
- (d) whether the Government has contacted the Panama Oil company to disclose the holdings of the Indians and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a)          Information  about  certain  offshore  entities  reportedly  held by  various  Indian persons  had  appeared  in  media  in  April  2016  and  thereafter.  The  information  is attributed  to  be  part  of  'Panama  Papers'  leaks.  The  International  Consortium  of Investigative Journalists (ICIJ), a Washington  based  organization which has reportedly made the revelations pertaining to the Panama Papers, has put a caveat on  its  website  (www.icij.org)  by  mentioning  that  it  should  not  be  assumed  that

everyone  who  appears  in  the  Panama  Papers  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.

In  the  context  of  India,  the  information,  inter  alia,  indicates  apparent  linkage between  certain  Indian  persons  and  various  offshore  entities  in  low-tax  or  no  tax jurisdictions  such  as  British  Virgin  Islands  (BVI),  Bahamas,  Jersey,  Seychelles, Mauritius,  Panama,  Hong  Kong,  UAE,  Isle  of  Man,  Singapore,  etc.  However,  no instance  is  reported  of  investment  by  Indian  resident  persons  in  Panama  Oil company.

(b)  &  (c)        The  Government  has  taken  necessary  measures  for  expeditious investigation  in  such  cases  including  through  enhanced  international  cooperation. On 4 th April 2016, the Government constituted a Multi-Agency Group, inter alia, for facilitating  co-ordinated  and  speedy  investigation  in  the  cases  of  Indian  persons allegedly having undisclosed foreign assets and whose names appeared in Panama Papers  leaks.  The  Group  consists  of  the  officers  of  Investigation  Division  of  the Central  Board  of  Direct  Taxes  (CBDT),  Foreign  Tax  &  Tax  Research  Division  of CBDT, Enforcement Directorate (ED), Financial Intelligence Unit (FIU) and Reserve Bank of India, and its Convener is Member (Investigation), CBDT.

The Multi-Agency Group has so far submitted 6 reports to the Government. The Special Investigation Team on black money has been kept informed of the progress. Investigation  is  at  different  stages  in  specific  cases.  Further  course  of  action including  assessment  of  undisclosed  income,  levy  of  applicable  penalties  and prosecution  in  appropriate  cases,  depends  upon  outcome  of  the  investigation  in respective cases. Disclosure of information regarding specific taxpayers is prohibited except as provided under section 138 of the Income tax Act, 1961 and section 84 of the  Black  Money  (Undisclosed  Foreign  Income  and  Assets)  &  Imposition  of  Tax Act,2015.

## (d)    Does not arise in view of reply to part (a)