Cases pertaining to ‘Pandora Papers’ will be investigated: Finance Ministry

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The government will investigate the cases pertaining to the global 'Pandora Papers' leak, which has named as many as 300 wealthy Indians who have stashed their earnings abroad, in a bid to dodge income tax.

On October 3, 2021, the International Consortium of International Journalists (ICIJ) came out with what is claimed to be a 2.94 terabyte data trove that exposed the offshore secrets of wealthy elites from more than 200 countries and territories.

"The Government has taken note of these developments. The relevant investigative agencies would undertake investigation in these cases and appropriate action would be taken in such cases as per law," the Central Board of Direct Taxes said in a release.

"With a view to ensure effective investigation in these cases, the Government will also proactively engage with foreign jurisdictions for obtaining information in respect of relevant taxpayers/entities," it added.

The CBDT said India is also part of an Inter-Governmental Group that ensures collaboration and experience sharing to effectively address tax risks associated with such leaks.

The investigation is based on a leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations, and other entities in low or no-tax jurisdictions.

"It may be noted that following earlier similar such leaks in the form of ICIJ, HSBC, Panama Papers and Paradise Papers, the Government has already enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with an aim to curb black money, or undisclosed foreign assets and income by imposing suitable tax and penalty on such income," the CBDT said.

Undisclosed credits of Rs 20,352 crore approximately (status as on 15.09.2021) have been detected in the investigations carried out in the Panama and Paradise Papers, it added.

However, it said that names of only a few Indians (legal entities as well as individuals) have appeared so far in the media. Even the ICIJ website (www.icij.org) has not yet released the names and other particulars of all the entities.

"The website of ICIJ suggests that information will be released in phases and structured data connected to the Pandora Papers investigation will be released only in the days to come on its Offshore Leaks Database," CBDT said.

The government has also directed today that investigations in cases of Pandora Papers leaks appearing in the media under the name ‘PANDORA PAPERS’ will be monitored through the Multi-Agency Group, headed by the Chairman, CBDT. The group will also have representatives from the Enforcement Directorate, Reserve Bank of India & Financial Intelligence Unit.