15:03 Apple shifted much of its offshore wealth in the face of a tax crackdown on a haven it had in Ireland, AFP reported after a review of the Paradise Papers.
Apple confirmed the move in an online post, saying it served to "ensure that tax obligations and payments to the US were not reduced."
13:55 A year after he hosted the first season of the TV show Kaun Banega Crorepati in 2000-01, Bollywood icon Amitabh Bachchan became shareholder of a digital media company incorporated in Bermuda in 2002, an investigation by Indian Express into the Paradise Papers has revealed.
Till the introduction of the Liberalised Remittance Scheme in 2004, all investments abroad made by resident Indians required prior approval of the Reserve Bank of India. It’s not clear if the shareholding was disclosed to RBI.
13:32 Elected to Rajya Sabha from Bihar in 2014 as a BJP member and considered one of the richest in the House, Ravindra Kishore Sinha, a former journalist who founded the private security service firm SIS or Security and Intelligence Services, heads a group which has two offshore entities, Indian Express reported.
According to records of the Malta registry, SIS Asia Pacific Holdings Ltd (SAPHL), registered in Malta in 2008, is a subsidiary of SIS. Sinha is listed as a minority shareholder while wife Rita Kishore Sinha is a director of SAPHL. Records show that SIS International Holdings Limited (SIHL), a company incorporated in British Virgin Islands, holds 3,999,999 shares in SAPHL while 1 share is with Ravindra Kishore Sinha.
12:47 Looking at the Paradise Papers from a global perspective, UK-based newspaper The Guardian today published an insightful editorial on its view on the matter. Read it here.
12:38 When global law firm Linklaters Singapore Pte approached Appleby in 2013 to appoint two nominee directors on two Mauritius-based companies of Jindal Stainless Group — Jargo Investments and Vavasa Investments — the offshore service provider decided against going ahead with the appointments, Indian Express reported.
Reason: the compliance manager of Appleby raised a red flag that since the beneficial owner (Abhyuday Jindal) was of Indian nationality and investments were being made in India, there is the risk of ‘round tripping’.
12:03 A company registered by Appleby in tax haven Mauritius invested in an Indian firm that is at the heart of a probe by CBI and ED into what is called the Rajasthan Ambulance scam. One of the founders of the firm is the son of Congress leader and former Union minister Vayalar Ravi, Indian Express reported.
Global Medical Response of India Limited was registered in Mauritius on March 26 2008 by Appleby and classified as “high risk profile”. Reason: The company, earlier called Radec X Ltd, invested in Indian firm Ziqitza Health Care Limited which is under scrutiny of investigative agencies. Ziqitza provides ambulance services.
11:48 Corporate lobbyist Niira Radia, who was at the centre of a controversy in 2010 over intercepted phone conversations that came to be known as the Radia Tapes and suggested that she used her proximity to some journalists and politicians to try and influence ministerial appointments in UPA II, was part of two offshore companies in Malta.
Malta registry documents investigated by Indian Express show that Radia was director, legal and judicial representative in Suez La Vallette Limited, incorporated in Malta in April 2012; and Pegasus International Advisors Limited, incorporated in Malta in August 2011.
11:34 Records investigated by Indian Express show that in 2004, Dr Ashok Seth, chairman of Fortis-Escorts — honoured with the Padma Bhushan and Padma Shri – was given shares by a Singapore-based company that manufactures stents, before the company went public.
Subsequently, Seth prescribed these stents to his patients and cashed in on these shares.
11:25 Through a complex web of transactions, offshore companies of the Essel Group, promoted by Subhash Chandra, raised funds to repay debt and finance Veria Lifestyles, a venture Chandra owns outside the Zee umbrella, by pledging promoter shares of Zee Entertainment Enterprises, Appleby records show. The story was reported by Indian Express as a part of their investigation into the Paradise Papers.
11:08 Before he fell to his death from a London penthouse on November 8, 2015, Angad Paul, son of UK-based business magnate Lord Swaraj Paul, had taken the Mauritius route to invest in India, primarily in the wind energy sector, according to Appleby records. The story was reported by Indian Express as a part of their investigation into the Paradise Papers.
10:50 An investigation into the Paradise Papers by Indian Express has revealed links of Network 18 Group to 4 offshore entities from before the 2014 change in ownership, 3 of which have been listed as subsidiaries in the group's annual report. Read the full story here.
10:45 The Hinduja Group, with revenues of over USD 25 billion and employing 100,000-plus people, effectively utilised a “trust” structure and its opaqueness to waive over USD 78 million in debt to a group holding company despite the trustees pointing out that the act would benefit the Hinduja family members, Appleby records show.
The news was reported by Indian Express, which is currently publishing a series of stories based on an investigation conducted into the Paradise Papers.
22:04 The Income Tax department and Securities and Exchange Board of India (Sebi) said Monday they will be scrutinizing the so-called Paradise Papers—the documents obtained by a global network of investigative journalists—to see if any Indian individual or companies engaged in wrongdoing.
According to a Mint report, while the income tax authorities will investigate companies evading taxes by using complex offshore structures, Sebi will be scrutinising disclosures.
20:25 European Union finance ministers will discuss setting up a blacklist of worldwide tax havens, EU officials said, after leaked documents from an offshore law firm revealed investments by wealthy individuals and institutions around the globe, according to Reuters report.
The subject’s inclusion on the monthly meeting’s agenda came after the weekend publication of media reports citing the so-called “Paradise Papers”, a trove of leaked financial documents mostly from Appleby, a prominent offshore law firm.
18:15 "The investigation units of the Income Tax Department have been alerted to take note of revelations for immediate appropriate action. It has been reported that many cases of offshore entities are already under investigation on fast track. As soon as further information surfaces, swift action as per law will follow," the government has said in a statement.
17:55 The reconstituted Multi Agency Group will be headed by the CBDT Chairman Sushil Chandra and have representatives from CBDT, Enforcement Directorate, Reserve Bank of India and Financial Intelligence Unit. Paradise Papers indicate that out of 180 countries represented in data of offshore entities held by persons of different nationalities,India ranks 19th in terms of number of names, CBDT said. About 714 Indians reportedly appear in tally, it added.
17:45 Multi-agency Group will monitor investigations: CBDT
After hours-long silence, the government has spoken on the Paradise Papers. The CBDT says the Centre has directed that all investigations will be monitored through a reconstituted multi-agency group, reports ANI.
17:37 BJP MP named in reports goes on a 'Maun Vrat'
BJP Rajya Sabha MP Ravindra Kishore Sinha, whose name has cropped up in the Paradise Papers leak in connection with his firm’s offshore links, on Monday remained "silent" on the matter. He informed that he is on ‘maun vrat’ (silence of vow) for a week. Sinha refused to comment over the issue but scribbled on a paper that he has taken a pledge to not speak for a week till ‘Bhagwat Yagna’.
16:16 Veerappa Moily's son Harsh is in the limelight
In addition to Vayalar Ravi, M Veerappa Moily is the other UPA minister in the limelight in connection with the Paradise Papers. According to The Indian Express, Moily’s son Harsha started a firm which received investments from subsidiaries a company linked to tax havens. Veerappa Moily was the Union minister for Corporate Affairs at the time.
16:02 Trump's Secretary of Commerce Wilbur Ross rejects allegations
Speaking to CNBC, United States Secretary of Commerce, Wilbur Ross who was named in today's Paradise Papers leaks, has rejected all allegations against him.
Ross also said that he is not an official, director or an investor of any of the Russian companies.
Even after becoming the Secretary of Commerce, Ross had retained investments in a shipping firm he once controlled that has business ties to a Russian oligarch subject to American sanctions and Russian President Vladimir Putin’s son-in-law, according to newly disclosed documents as part in the Paradise Papers leaks.
15:43 Congress has demanded a high-level probe into Jayant Sinha's offshore assets. It has also said that MoS Sinha's non-disclosure amounts to an electoral offense.
15:32 RK Sinha takes a 'vow of silence'
RK Sinha, when asked about the Paradise Papers, has said that he has taken a vow of silence.
He held a sheet of paper which read: "I have taken a vow of silence for seven days for Bhagwat Yadnya".
15:20 WHAT ARE OFFSHORE COMPANIES?
A company is any legal entity participating in business activities, such as a proprietorship, partnership, or corporation either public or private.
Offshore is a term that means outside one’s own jurisdiction. Generally, offshore companies are incorporated in countries with relatively lower tax rates than the country in contention.
14:58 SEBI sets eyes on firms for fund diversion
Markets regulator Securities and Exchange Board of India (SEBI) will look into alleged fund diversion and corporate governance lapses at various listed firms and their promoters, including those linked to Vijay Mallya, named in the leaked 'Paradise Papers', according to PTI.
While some entities linked to Mallya are already being probed by SEBI and other agencies, any fresh disclosure in the leaked documents made public by ICIJ (International Consortium of Investigative Journalists) would be thoroughly looked into, senior officials said.
The disclosures about other listed firms and those associated with them or their promoters would also be looked into for any irregularities including about corporate governance and disclosure norms, the officials added.
14:37 Indian politicians facing questions: Ashok Gehlot, Sachin Pilot, Vayalar Ravi
The Paradise Papers report has revealed that a company registered by Appleby Mauritius had invested in an Indian firm that is at the centre of an investigation by the CBI and the Enforcement Directorate in connection with the Rajasthan Ambulance “scam”.
One of the founders of the firm is the son of Congress leader and former Union minister for Overseas Affairs Vayalar Ravi.
A police complaint had earlier named former Rajasthan chief minister Ashok Gehlot, former finance minister P Chidambaram's son Karti, and former Union minister Sachin Pilot.
14:17 British businessman Lord Ashcroft facing fresh questions
Michael Ashcroft, who is one of the Conservative party’s biggest donors, is now facing fresh questions after the Paradise Papers revealed a previously unknown trust, sheltering his vast overseas wealth.
Documents show scores of emails and financial statements that show the inner working of the Punta Gorda Trust which is based in Bermuda since 2000.
The documents run until 2016, when the offshore law firm Appleby, which acted as trustee, terminated the relationship, in a decision questioned by Ashcroft’s representatives at that time.
The value of the trust has fluctuated, but a leaked financial statement recorded it as having assets of USD 450.4 million (£ 341m) in the year 2006, The Guardian has reported.
14:02 Americans dominate list of clients
Americans companies and citizens dominate the list of Appleby’s clients. India, as mentioned earlier, is 19th on the list.
13:46 Nira Radia's name crops up again
Corporate lobbyist Nira Radia, who was at the centre of a storm in 2010 over alleged lobbying for ministerial appointments, was part of two offshore companies in Malta, according to The Indian Express.
13:24 After Nawaz Sharif, another former Pakistan PM linked to offshore accounts
Former Pakistan prime minister Shaukat Aziz figures in a new trove of data leaks on offshore dealings, about 18 months after the Panama Papers listed Nawaz Sharif for graft and money laundering charges that cost him his premiership.
Aziz, 68, served as Pakistan's prime minister from 2004 to 2007.
The Express Tribune reported that Aziz is linked with Antarctic Trust, which was set up by him, and includes his wife, children and granddaughter as beneficiaries.
Aziz had set up the trust in the US state of Delaware before becoming finance minister in 1999. He was working for financial giant Citibank at the time. The trust was not declared at any point during his stint as the finance minister or the prime minister.
13:03 LENS ON GMR GROUP
Appleby's data also includes thousands of documents on Delhi-based GMR Group. The Income Tax Department had raided the group last year and had uncovered an attempt of avoid tax via a network of 28 offshore entities which were setup by Appleby.
12:48 Mallya in the mix
Appleby’s files also revealed that when former Indian liquor magnate Vijay Mallya, who is on the run from Indian authorities at the moment, sold his United Spirits Limited India to Diageo, the latter approached a London-based law firm to implement a massive restructuring exercise aimed at simplifying the complex corporate structure Mallya had created.
The documents go on to reveal that close to USD 1.5 billion of USL Holdings’ loans, which were funnelled into four subsidiary companies in the form of debt, were waived off by Diageo.
12:32 More than 700 Indian companies and individuals have been linked to tax havens. Here's a lowdown on the Indian connection with the Paradise Papers.
12:06 Among the high-profile world figures on the list is Bono, frontman of rock band U2. The Irishman used a company based in Malta to pay for a stake in a shopping centre in a small town in Lithuania, according to The Guardian. In Malta, foreign investors pay just 5 percent tax on profits.
11:49 Share prices dip
Shares of various firms, led by Jindal Steel, on Monday fell by up to 2.3 percent amid reports that their names have cropped up in the leaked list of Paradise Papers' of companies.
The scrip of Jindal Steel & Power went down by 2.32 percent, Essar Shipping lost 2 per cent and Videocon Industries fell by 1.82 percent on BSE.
Also, shares of Sun TV Network fell by 1.74 percent, GMR Infrastructure declined by 1.57 per cent and Apollo Tyres dipped 0.88 percent.
11:33 Links to SIS founder and BJP MP Ravindra Kishore Sinha
Rajya Sabha MP Ravindra Kishore Sinha, founder of private security firm SIS which went public earlier this year, is the head of an organisation which has two offshore companies, according to The Indian Express.
"These matters have been fully disclosed in the various filings with SEBI as a part of the IPO of Security and Intelligence Services (India) Limited,” said Sinha.
11:20 Spotlight on Sanjay Dutt's wife
The Paradise Papers have also shed light on the business dealings of Manyata, the wife of Bollywood actor Sanjay Dutt. The Indian Express reports that Manyata, whose real name is Dilnashin, held positions in a company registered in the Bahamas. A spokesperson for Manyata said the necessary disclosures were made to the income tax authorities.
11:06 Even as black money continues to dominate political discourse, BJP and Congress — the country's two major political parties — have thus far maintained radio silence on the Paradise Papers.
However, individuals whose named have cropped up, such as Union Minister of State Jayant Sinha, have issued statements in their personal capacities.
10:57 World's second biggest data leak
In terms of volume, this is the world's second biggest data leak:
Panama Papers - 2.6 TB
Paradise Papers - 1.4 TB
Offshore secrets - 260 GB
Luxembourg tax files - 4.4 GB
HSBC files - 3.3 GB
WikiLeaks - 1.7GB
10:46 Heat on UPA ministers
In addition to Vayalar Ravi, M Veerappa Moily is the other UPA minister in the limelight in connection with the Paradise Papers. According to The Indian Express, Moily’s son Harsha started a firm which received investments from subsidiaries a company linked to tax havens. Veerappa Moily was the Union minister for Corporate Affairs at the time.
10:33 Home truths for Trudeau
The Paradise Papers will also make Canadian Prime Minister Justin Trudeau a tad uncomfortable.
Stephen Bronfman, a close friend of Trudeau and former fund-raiser, has been named in connection with links to offshore accounts.
Three former Canadian prime ministers — Brian Mulroney, Paul Martin and Jean Chretien — have also been linked.
Huffington Post quotes the Canadian Revenue Agency as saying it will investigate any evidence that crops up against Canadian nationals in the Paradise Papers.
10:22 What is Appleby?
While Panama law firm Mossack Fonseca was at the centre of the Panama Papers leak, this time a company in Bermuda is the source of the trove of information on tax havens.
Appleby is 119-year-old company and a leading member of the global network of lawyers, accountants, bankers and other operatives who set up offshore companies and manage bank accounts for clients to do the following: avoid or evade taxes; manage real estate assets; open escrow accounts; purchase airplanes and yachts paying low tax rates; or, simply, use offshore vehicles to move millions across the globe.
10:07 If you're looking to get up to speed on the Paradise Papers, here's the leak on tax havens explained in 60 seconds.
09:55 Trouble for Trump?
The leaks also show that US Commerce Secretary Wilbur Ross has business ties to a shipping firm linked to Russian President Vladimir Putin's inner circle.
Ross's ties to Russian entities raise questions over potential conflicts of interest, and whether they undermine Washington's sanctions on Moscow.
A Commerce Department spokesman denied any wrongdoing on Ross’ part.
09:40 Rajasthan link
Some more information on the India connect. The Indian Express reports that a company registered by Appleby Mauritius had invested in an Indian firm that is at the centre of an investigation by the CBI and the Enforcement Directorate in connection with the Rajasthan Ambulance “scam”.
One of the founders of the firm is the son of Congress leader and former Union minister for Overseas Affairs Vayalar Ravi.
A police complaint had earlier named former Rajasthan chief minister Ashok Gehlot, former finance minister P Chidambaram's son Karti, and former Union minister Sachin Pilot.
09:20 Important disclaimer
ICIJ, which sifted through the data, published the following disclaimer with regards to information provided: “There are legitimate uses for offshore companies, foundations and trusts. We do not intend to suggest or imply that any persons. companies or other entities included in the list have broken the law or otherwise acted improperly.”
09:10 The India Connect
India ranks 19th in terms of number of names on the list. As many as 714 Indians are on the list with Appleby's second-largest client said to be an Indian entity.
08:55 Union Minister of State for Civil Aviation Jayant Sinha has responded to his name appearing in the Paradise Papers investigation
This is what Sinha has said, in a series of tweets:
“Full details have been provided to Indian Express. These were bonafide and legal transactions undertaken on behalf of highly reputed world-leading organisations in my fiduciary role as Partner at Omidyar Network and its designated representative on the D.Light Board. All these transactions have been fully disclosed to relevant authorities through all necessary filings as required. After leaving Omidyar Network, I was asked to continue on the D.Light Board as an Independent Director. On joining the Union Council of Ministers, I immediately resigned from the D.Light Board and severed my involvement with the company. It is crucial to note that these transactions were done for D.Light as an Omidyar representative, and not for any personal purpose.”
08:12 After Nawaz Sharif, Pakistan former Prime Minister Shaukat Aziz named
Former Pakistan Prime Minister Shaukat Aziz is one of the 120+ politicians named in the investigative report by ICIJ and its affiliate news organisation.
Earlier, Pakistan PM Nawaz Sharif had been disqualified from holding office by the country's Supreme Court. The top court had also ordered that a case be registered against Sharif and ruled that a reference be sent against him and his family to an accountability court.
The scandal is about alleged money laundering by Sharif in 1990s, when he twice served as prime minister, to purchase assets in London. The assets surfaced when Panama Papers leak last year revealed that they were managed through offshore companies owned by Sharif's children.
08:05 Russian firm invested in Twitter and Facebook, Pakistan PM named
The investigation had exposed a Russian firm’s investment into Twitter and Facebook, ties between Russia and US President Donald Trump’s billionaire commerce secretary Wilbur Ross, secret dealings of Canadian Prime Minister Justin Trudeau’s chief-fundraiser and undisclosed offshore investments of Queen Elizabeth II along with more than 120 politicians that includes former Pakistan PM Shaukat Aziz.
07:54 Queen Elizabeth has investments in offshore havens: Reports
Documents revealed in the investigation into offshore tax heavens have revealed that millions of pounds from Queen Elizabeth II’s private estate have been invested in a Cayman Islands fund as part of an offshore portfolio that has never before been disclosed.
The private estate called The Duchy of Lancaster generates a return for the British monarch. It was established in 1399 and manages land and investments held in trust on behalf of the Queen.
01:05 At the center of the Paradise Papers leak is Appleby, a company that helps the rich shuffle money across countries and into tax havens.
Similar to Mossack Fonseca, which was the primary source of leaks during the infamous Panama Papers investigation, the new set of papers reveal a whole host of activities undertaken by Appleby.
In the words of a senior executive, Robert Woods, whose Powerpoint presentation from 2011 finds its way into the leaks, who was listing out various activities of the firm: "some of the crap we accept is amazing totally amazing".
Read ICIJ's full profile on Appleby.
01:00 The names of any Indian companies or individuals have not come up yet, though the Express is set to start rolling them out shortly.
Globally, a number of names have come up, and transactions revealed, including Prime Minister Justin Trudeau's chief fund-raiser, former Pakistan Prime Minister Shaukat Aziz and Queen Elizabeth, among others.
Also under the lens will be US President Donald Trump, whose billionaire Commerce Secretary Wilbur Russ has been seen as having connections with Russia -- the country is the subject of an ongoing investigation of whether it meddled with the US election held last year.
12:55 And while it is clear that opening companies or bank accounts in tax havens is not illegal, given the trail of suspicious activity that has now been established, including through the Panama Papers leak in 2016, the Paradise Papers report is set to blow the lid of stuff that could have global ramifications.
12:50 At the centre of the investigation is Appleby, a company that helps corporates and individuals shuffle money from and to tax havens and generally help them avoid or evade taxes.
12:45 Starting today, the newspaper will reveal a list of Indian companies and individuals -- 714 in all -- who have stashed money abroad in tax havens through offshore entities.
12:40 Welcome to the live coverage of the release of the Paradise Papers, the leak of a 13.6-million strong document trove, which is set to shake up the global financial and political system.
About 100 global news organisations, including the Indian Express in India, have investigated the Paradise Papers, and are slated to come up with a slew of investigative reports that would name companies and individuals suspected of shady dealings including, but not limited to, funnelling money to secret tax havens.
Apple shifted much of its offshore wealth in the face of a tax crackdown on a haven it had in Ireland, AFP reported after a review of the Paradise Papers.
Apple confirmed the move in an online post, saying it served to "ensure that tax obligations and payments to the US were not reduced."
A year after he hosted the first season of the TV show Kaun Banega Crorepati in 2000-01, Bollywood icon Amitabh Bachchan became shareholder of a digital media company incorporated in Bermuda in 2002, an investigation byIndian Expressinto the Paradise Papers has revealed.
Till the introduction of the Liberalised Remittance Scheme in 2004, all investments abroad made by resident Indians required prior approval of the Reserve Bank of India. It’s not clear if the shareholding was disclosed to RBI.
Elected to Rajya Sabha from Bihar in 2014 as a BJP member and considered one of the richest in the House, Ravindra Kishore Sinha, a former journalist who founded the private security service firm SIS or Security and Intelligence Services, heads a group which has two offshore entities, Indian Express reported.
According to records of the Malta registry, SIS Asia Pacific Holdings Ltd (SAPHL), registered in Malta in 2008, is a subsidiary of SIS. Sinha is listed as a minority shareholder while wife Rita Kishore Sinha is a director of SAPHL. Records show that SIS International Holdings Limited (SIHL), a company incorporated in British Virgin Islands, holds 3,999,999 shares in SAPHL while 1 share is with Ravindra Kishore Sinha.
Looking at the Paradise Papers from a global perspective, UK-based newspaper The Guardian today published an insightful editorial on its view on the matter. Read it here.
When global law firm Linklaters Singapore Pte approached Appleby in 2013 to appoint two nominee directors on two Mauritius-based companies of Jindal Stainless Group — Jargo Investments and Vavasa Investments — the offshore service provider decided against going ahead with the appointments, Indian Express reported.
Reason: the compliance manager of Appleby raised a red flag that since the beneficial owner (Abhyuday Jindal) was of Indian nationality and investments were being made in India, there is the risk of ‘round tripping’.
A company registered by Appleby in tax haven Mauritius invested in an Indian firm that is at the heart of a probe by CBI and ED into what is called the Rajasthan Ambulance scam. One of the founders of the firm is the son of Congress leader and former Union minister Vayalar Ravi, Indian Express reported.
Global Medical Response of India Limited was registered in Mauritius on March 26 2008 by Appleby and classified as “high risk profile”. Reason: The company, earlier called Radec X Ltd, invested in Indian firm Ziqitza Health Care Limited which is under scrutiny of investigative agencies. Ziqitza provides ambulance services.
Corporate lobbyist Niira Radia, who was at the centre of a controversy in 2010 over intercepted phone conversations that came to be known as the Radia Tapes and suggested that she used her proximity to some journalists and politicians to try and influence ministerial appointments in UPA II, was part of two offshore companies in Malta.
Malta registry documents investigated by Indian Express show that Radia was director, legal and judicial representative in Suez La Vallette Limited, incorporated in Malta in April 2012; and Pegasus International Advisors Limited, incorporated in Malta in August 2011.
Records investigated by Indian Express show that in 2004, Dr Ashok Seth, chairman of Fortis-Escorts — honoured with the Padma Bhushan and Padma Shri – was given shares by a Singapore-based company that manufactures stents, before the company went public.
Subsequently, Seth prescribed these stents to his patients and cashed in on these shares.
Through a complex web of transactions, offshore companies of the Essel Group, promoted by Subhash Chandra, raised funds to repay debt and finance Veria Lifestyles, a venture Chandra owns outside the Zee umbrella, by pledging promoter shares of Zee Entertainment Enterprises, Appleby records show. The story was reported by Indian Express as a part of their investigation into the Paradise Papers.
Before he fell to his death from a London penthouse on November 8, 2015, Angad Paul, son of UK-based business magnate Lord Swaraj Paul, had taken the Mauritius route to invest in India, primarily in the wind energy sector, according to Appleby records. The story was reported by Indian Express as a part of their investigation into the Paradise Papers.
An investigation into the Paradise Papers by Indian Express has revealed links of Network 18 Group to 4 offshore entities from before the 2014 change in ownership, 3 of which have been listed as subsidiaries in the group's annual report. Read the full story here.
The Hinduja Group, with revenues of over USD 25 billion and employing 100,000-plus people, effectively utilised a “trust” structure and its opaqueness to waive over USD 78 million in debt to a group holding company despite the trustees pointing out that the act would benefit the Hinduja family members, Appleby records show.
The news was reported by Indian Express, which is currently publishing a series of stories based on an investigation conducted into the Paradise Papers.
The Income Tax department and Securities and Exchange Board of India (Sebi) said Monday they will be scrutinizing the so-called Paradise Papers—the documents obtained by a global network of investigative journalists—to see if any Indian individual or companies engaged in wrongdoing.
According to a Mint report, while the income tax authorities will investigate companies evading taxes by using complex offshore structures, Sebi will be scrutinising disclosures.
European Union finance ministers will discuss setting up a blacklist of worldwide tax havens, EU officials said, after leaked documents from an offshore law firm revealed investments by wealthy individuals and institutions around the globe, according to Reuters report.
The subject’s inclusion on the monthly meeting’s agenda came after the weekend publication of media reports citing the so-called “Paradise Papers”, a trove of leaked financial documents mostly from Appleby, a prominent offshore law firm.
"The investigation units of the Income Tax Department have been alerted to take note of revelations for immediate appropriate action. It has been reported that many cases of offshore entities are already under investigation on fast track. As soon as further information surfaces, swift action as per law will follow," the government hassaid in a statement.
The reconstituted Multi Agency Group will be headed by the CBDT Chairman Sushil Chandra and have representatives from CBDT, Enforcement Directorate, Reserve Bank of India and Financial Intelligence Unit. Paradise Papers indicate that out of 180 countries represented in data of offshore entities held by persons of different nationalities,India ranks 19th in terms of number of names, CBDT said.About 714 Indians reportedly appear in tally, it added.
Multi-agency Group will monitor investigations: CBDT
After hours-long silence, the government hasspokenon the Paradise Papers. TheCBDTsays the Centre has directed that all investigations will be monitored through a reconstituted multi-agency group, reports ANI.
BJP MP named in Paradise Files goes on a 'Maun Vrat'
BJP Rajya Sabha MP Ravindra Kishore Sinha, whose name has cropped up in theParadise Papersleak in connection with his firm’s offshore links, on Monday remained "silent" on the matter. He informedthat he is on‘maun vrat’ (silence of vow) for a week. Sinha refused to comment over the issue but scribbled on a paper that he has taken a pledge to not speak for a week till ‘Bhagwat Yagna’.
Veerappa Moily's son Harsh is in the limelight
In addition toVayalarRavi, MVeerappaMoilyis the otherUPAminister in the limelight in connection with the Paradise Papers.According toThe Indian Express,Moily’s sonHarshastarted a firmwhich received investmentsfrom subsidiaries a company linked to tax havens.VeerappaMoilywas the Unionministerfor Corporate Affairs at the time.
Trump's Secretary of Commerce Wilbur Ross rejects allegations
Speaking toCNBC, United States Secretary of Commerce, Wilbur Ross who was named in today's Paradise Papers leaks, has rejected all allegations against him.
Ross also said that he is not an official, director or an investor of any of the Russian companies.
Even after becoming the Secretary of Commerce, Ross had retained investments in a shipping firm he once controlled that has business ties to a Russian oligarch subject to American sanctions and Russian President Vladimir Putin’s son-in-law, according to newly disclosed documents as part inthe Paradise Papers leaks.
RK Sinha takes a 'vow of silence'
RK Sinha, when asked about the Paradise Papers, has said that he has taken a vow of silence.
He held a sheet of paper which read,"I have taken a vow of silence for seven days for Bhagwat Yadnya".
WHAT ARE OFFSHORE COMPANIES?
A company is any legal entity participating in business activities, such as a proprietorship, partnership, or corporation either public or private.
Offshore is a term that means outside one’s own jurisdiction. Generally, offshore companies are incorporated in countries with relatively lower tax rates than the country in contention.
SEBI sets eyes on firms for fund diversion
Markets regulator Securities and Exchange Board of India (SEBI) will look into alleged fund diversion and corporate governance lapses at various listed firms and their promoters, including those linked to Vijay Mallya, named in the leaked 'Paradise Papers', according toPTI.
While some entities linked to Mallya are already being probed by SEBI and other agencies, any fresh disclosure in the leaked documents made public by ICIJ (International Consortium of Investigative Journalists) would be thoroughly looked into, senior officials said.
The disclosures about other listed firms and those associated with them or their promoters would also be looked into for any irregularities including about corporate governance and disclosure norms, the officials added.
Indian politicians facing questions: Ashok Gehlot, Sachin Pilot, Vayalar Ravi
The Paradise Papers report hasrevealed thatacompany registered by Appleby Mauritius had invested in an Indian firm that is at thecentreof an investigation by the CBI and the Enforcement Directorate in connection with the Rajasthan Ambulance “scam”.
One of the founders of the firm is the son of Congress leader and former Union minister for Overseas AffairsVayalarRavi.
A police complaint had earlier named former Rajasthan chief minister Ashok Gehlot,former finance minister P Chidambaram's son Karti, andformer Union minister Sachin Pilot.
British businessman Lord Ashcroft facing fresh questions
Michael Ashcroft, who is one of the Conservative party’s biggest donors, is now facing fresh questions after the Paradise Papers revealed a previously unknown trust, sheltering his vast overseas wealth.
Documents show scores of emails and financial statements that show the inner working of the Punta Gorda Trust which is based in Bermuda since 2000.
The documents run until 2016, when the offshore law firm Appleby, which acted as trustee, terminated the relationship, in a decision questioned by Ashcroft’s representatives at that time.
The value of the trust has fluctuated, but a leaked financial statement recorded it as having assets of USD 450.4 million (£ 341m) in the year 2006,The Guardianhasreported.
Americans dominate list of clients
Americans companies and citizens dominate the list of Appleby’s clients. India, as mentioned earlier, is 19th on the list.
Nira Radia's name crops up again
Corporate lobbyist Nira Radia, who was at the centre of a storm in 2010 over allegedlobbying for ministerial appointments, was part of two offshore companies in Malta, according to The Indian Express.
After Nawaz Sharif, another former Pakistan PM linked to offshore accounts
Former Pakistan prime ministerShaukatAziz figures in a new trove of data leaks on offshore dealings, about 18 months after the Panama Papers listed Nawaz Sharif for graft and money laundering charges that cost him his premiership.
Aziz, 68, served as Pakistan's prime minister from 2004 to 2007.
The Express Tribune reported that Aziz is linked with Antarctic Trust, which was set up by him, and includes his wife, children and granddaughter as beneficiaries.
Aziz had set up the trust in the US state of Delaware before becoming finance minister in 1999. He was working for financial giant Citibank at the time.The trust was not declared at any point during his stint as the finance minister or the prime minister.
After Nawaz Sharif, another former Pakistan PM linked to offshore accounts
Former Pakistan prime minister Shaukat Aziz figures in a new trove of data leaks on offshore dealings, about 18 months after the Panama Papers listed Nawaz Sharif for graft and money laundering charges that cost him his premiership.
Aziz, 68, served as Pakistan's prime minister from 2004 to 2007.
The Express Tribune reported that Aziz is linked with Antarctic Trust, which was set up by him, and includes his wife, children and granddaughter as beneficiaries.
Aziz had set up the trust in the US state of Delaware before becoming finance minister in 1999. He was working for financial giant Citibank at the time. The trust was not declared at any point during his stint as the finance minister or the prime minister.
LENS ON GMR GROUP
Appleby's data also includes thousands of documents on Delhi-based GMR Group. The Income Tax Department had raided the group last year and had uncovered an attempt of avoid tax via a network of 28 offshore entities which were setup by Appleby.
Mallya in the mix
Appleby’s files also revealed that when former Indian liquor magnate Vijay Mallya, who is on the run from Indian authorities at the moment, sold his United Spirits Limited India to Diageo, the latter approached a London-based law firm to implement a massive restructuring exercise aimed at simplifying the complex corporate structure Mallya had created.
The documents go on to reveal that close to USD 1.5 billion of USL Holdings’ loans, which were funnelled into four subsidiary companies in the form of debt, were waived off by Diageo.
More than 700 Indian companies and individuals have been linked to tax havens. Here's a lowdown on the Indian connection withthe Paradise Papers.
Among the high-profile world figures on the list is Bono, frontman of rock band U2. The Irishman used a company based in Malta to pay for a stake in a shopping centre in a small town in Lithuania, according to The Guardian. In Malta, foreign investors pay just 5 percent tax on profits.
Stock prices dip
Shares of various firms, led by Jindal Steel, on Monday fell by up to 2.3 per cent amid reports that their names have cropped up in the leaked list of Paradise Papers' of companies.
The scrip of Jindal Steel & Power went down by 2.32 percent, Essar Shipping lost 2 per cent and Videocon Industries fell by 1.82 percent on BSE.
Also, shares of Sun TV Network fell by 1.74 percent, GMR Infrastructure declined by 1.57 per cent and Apollo Tyres dipped 0.88 percent.
Links to SIS founder and BJP MP Ravindra Kishore Sinha
Rajya SabhaMP RavindraKishore Sinha, founder of private securityfirm SIS which went public earlier this year, is the head of an organisation which has two offshore companies, according to The Indian Express.
"These matters have been fully disclosed in the various filings with SEBI as a part of the IPO of Security and Intelligence Services (India) Limited,” said Sinha.
Spotlight on Sanjay Dutt's wife
The Paradise Papers have also shed light on thebusiness dealings of Manyata, the wife of Bollywood actor Sanjay Dutt.The Indian Expressreports that Manyata, whose real name is Dilnashin, held positions in a company registered in the Bahamas. A spokesperson for Manyata said the necessary disclosures were made to the income tax authorities.
Even as black money continues to dominate political discourse,BJPand Congress — the country's two major political parties — have thus far maintained radio silence on the Paradise Papers.
However, individuals whose named have cropped up, such as Union Minister of State Jayant Sinha, have issued statements in their personal capacities.
World's second biggest data leak
In terms of volume, this is the world's second biggest data leak:
Panama Papers - 2.6 TB
Paradise Papers - 1.4 TB
Offshore secrets - 260 GB
Luxembourg tax files - 4.4 GB
HSBC files - 3.3 GB
WikiLeaks - 1.7GB
Heat on UPA ministers
In addition to Vayalar Ravi, M Veerappa Moily is the other UPA minister in the limelight in connection with the Paradise Papers. According to The Indian Express,Moily’s son Harsha started a firm which received investments from subsidiaries a company linked to tax havens. Veerappa Moily was the Union minister for Corporate Affairs at the time.
Home truths for Trudeau
The Paradise Papers will also make Canadian Prime Minister Justin Trudeau a tad uncomfortable.
Stephen Bronfman, a close friend of Trudeau and former fund-raiser, has been named in connection with links to offshore accounts.
Three former Canadian prime ministers — Brian Mulroney, Paul Martin and Jean Chretien — havealso been linked.
Huffington Post quotes the Canadian Revenue Agency as saying it will investigate any evidence that crops up against Canadian nationals in the Paradise Papers.
WHAT IS APPLEBY?
WhilePanama law firmMossackFonseca was at the centre of the Panama Papers leak, this time a company in Bermuda is the source of the trove of information on tax havens.
Appleby is 119-year-old company and a leading member of the global network of lawyers, accountants, bankers and other operatives who set up offshore companies and manage bank accounts for clients to do the following: avoid or evade taxes; manage real estate assets; open escrow accounts; purchase airplanes and yachts paying low tax rates; or, simply, use offshore vehicles to move millions across the globe.
If you're looking to get up to speed on the Paradise Papers, here's the leak on tax havens explained in 60 seconds.
Trouble for Trump?
The leaks also show that US Commerce Secretary Wilbur Ross has business ties to a shipping firm linked to Russian President Vladimir Putin's inner circle.
Ross's ties to Russian entities raise questions over potential conflicts of interest, and whether they undermine Washington's sanctions on Moscow.
A Commerce Department spokesman denied any wrongdoing on Ross’ part.
RAJASTHAN LINK
Some more information on the India connect. The Indian Express reports thata company registered by Appleby Mauritius had invested in an Indian firm that is at the centre of an investigation by the CBI and the Enforcement Directorate in connection with the Rajasthan Ambulance “scam”.
One of the founders of the firm is the son of Congress leader and former Union minister for Overseas Affairs Vayalar Ravi.
A police complaint had earlier named former Rajasthan chief minister Ashok Gehlot,former finance minister P Chidambaram's son Karti, andformer Union minister Sachin Pilot.
Important disclaimer
ICIJ, which sifted through the data,published the following disclaimer with regards to information provided:“There are legitimate uses for offshore companies, foundations and trusts. We do not intend to suggest or imply that any persons. companies or other entities included in the list have broken the law or otherwise acted improperly.”
The India Connect
India ranks 19th in terms of number of names on the list. As many as714 Indians are on the list with Appleby's second-largest client said to be an Indian entity.
SUMMARY
# Paradise Papers refer to a trove of financial data leakedfrom two firms
# The files contain informationabout 19 tax havens and showcompanies & individuals can avoid taxes using artificial entities
# Bermuda firm Appleby allegedly helped clients set up offshore firms & manage bank accounts toevade taxes,manage realty, buy planes andyachts, move tonnes of money across the globe
# Amitabh Bachchan, MoS Jayant Sinha among 714 Indians linked to tax havens
#Appleby’s second-largest client worldwide is Indian company Sun Group
Union Minister of State for Civil Aviation Jayant Sinha has responded to his name appearing in the Paradise Papers investigation
This is whatSinhahas said, in a series of tweets:
“Full details have been provided to Indian Express. These were bonafide and legal transactions undertaken on behalf of highly reputed world-leading organisations in my fiduciary role as Partner at Omidyar Network and its designated representative on the D.Light Board. All these transactions have been fully disclosed to relevant authorities through all necessary filings as required. After leaving Omidyar Network, I was asked to continue on the D.Light Board as an Independent Director. On joining the Union Council of Ministers, I immediately resigned from the D.Light Board and severed my involvement with the company. It is crucial to note that these transactions were done for D.Light as an Omidyar representative, and not for any personal purpose.”
After Nawaz Sharif, Pakistan's former Prime Minister Shaukat Aziz named
Former Pakistan Prime Minister Shaukat Aziz is one of the 120+ politicians named in the investigative report by ICIJ and its affiliate news organisation.
Earlier, Pakistan PM Nawaz Sharif had been disqualified from holding office by the country's Supreme Court. The top court had also ordered that a case be registered against Sharif and ruled that a reference be sent against him and his family to an accountability court.
The scandal is about alleged money laundering by Sharif in 1990s, when he twice served as prime minister, to purchase assets in London. The assets surfaced when Panama Papers leak last year revealed that they were managed through offshore companies owned by Sharif's children.
Russian firm invested in Twitter and Facebook, Pakistan PM named
The investigation had exposed a Russian firm’s investment into Twitter andFacebook, ties between Russia and US President Donald Trump’s billionairecommerce secretary Wilbur Ross, secret dealings ofCanadian Prime Minister Justin Trudeau’s chief-fundraiser and undisclosed offshore investments of Queen Elizabeth II along with more than 120 politicians that includes former Pakistan PM Shaukat Aziz.
