Lok Sabha Question No. 4525 (UNSTARRED), answered on 2016-08-12
Subject: Panama Papers
Ministry: FINANCE
Asked by: MD. BADARIDDOZA KHAN, SANJAY HARIBHAU JADHAV

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE *****

## LOK SABHA UN-STARRED QUESTION No. 4525

## TO BE ANSWERED ON FRIDAY, THE 12 TH AUGUST, 2016 SHRAVANA 21, 1938 (SAKA)

## PANAMA PAPERS

## 4525.  SHRI MD. BADARUDDOZA KHAN and SHRI SANJAY HARIBHAU JADHAV:

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

- (a) whether the Government has looked into the Panama Papers and if so, the details thereof;
- (b) whether the Government has also identified Indian offshore bank account holders and if so, the details thereof;
- (c) whether  the  Government  is  facing  resistance  and  non-cooperation  by  many foreign countries and such entities and if so, the details thereof; and
- (d) the plans chalk out by the government in this regard?

## ANSWER

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

(a) &  (b)        Recently,  information  about  certain  offshore  entities  held  by  various Indian persons has appeared in media. Such information is attributed to be part of 'Panama Papers' leaks. The revelations made, however, do not contain information regarding  financial  transactions  such  as  offshore  bank  account  details,  offshore properties/investments etc.  of  the  Indian  persons.  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.

- (c) 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 jurisdictions. As investigation in such cases  is  at  preliminary  stage,  further  inference/course  of  action  depends  upon outcome of investigation in respective cases.
- (d) The Government has taken necessary measures for expeditious investigation in such  cases  including  through  enhanced  international  cooperation.  Further,  the Government  has  constituted  a  Multi-Agency  Group  inter  alia,  for  facilitating  coordinated  and  speedy  investigation  in  the  cases  of  Indian  persons  allegedly  having undisclosed  foreign  assets  and  whose  names  are  reportedly  included  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. It has been asked to report the progress in such cases on regular basis.