Govt spells out in SC measures to retrieve black money

The government said it has initiated the process of negotiations with 65 countries to amend the existing Double Taxation Avoidance Agreement (DTAA) and broaden the scope of the article concerning exchange of information.

It admitted that it did not conduct any fresh study on black money so far due to the reason that credibility of any estimate of such money was doubtful and transactions by their very nature were "unrecorded, unreported, complex and layered."

"However, keeping in view the recent international and domestic developments, a study has now been proposed to be conducted by the Finance Ministry for a thorough assessment/survey of unaccounted income/wealth both inside and outside the country, particularly bringing out the nature of activities engendering money laundering with its ramifications on national security."

The government submitted that in view of the stringent measures required to deal with undisclosed foreign bank accounts and cross-border transactions, the Central Board of Direct Taxes has asked the Income Tax authorities that in specified categories of cases, prosecution proceedings may be initiated immediately after completing the assessment or reassessment.

"It is submitted that once prosecution is launched in such cases, the information will be available for use by other law enforcement agencies and will also become available in the public domain," the affidavit added.