After the revelations form part of the largest ever leak of financial data involving two companies, Bermuda’s Appleby and Singapore’s Asiaciti, which helped the global rich and powerful, including from India, to move their money abroad, the government has taken prompt action saying that a multi-agency group (MAG) probing the Panama Papers leak will look into the 'Paradise Papers' on financial holdings abroad that list a number of 714 Indian individuals and entities. The MAG was constituted in April last year to investigate the legality of money stashed in offshore entities by Indians named in the Panama Papers.
According to the release issued by Central Board of Direct Taxes (CBDT) the MAG will take 'swift action' on the 'Paradise Papers' on the financial holdings abroad that list a number of Indian entities. The panel will first 'go through' the details of income tax returns filed by the 714 Indian individuals and entities named in the 'Paradise Papers' and subsequently take action, in a case-to-case basis. The CBDT also said that investigation in many cases of offshore entities is already on fast track. 'As soon as further information surfaces, swift action as per law will follow,' however it also said that it is still to receive full details of the latest disclosures.
The latest disclosure made by the International Consortium of Investigative Journalists (ICIJ) has ranked India 19th among 180 countries whose citizens and companies sheltered their wealth in secretive tax havens abroad. As per the report, among Appleby`s Indian clients were several prominent corporates and companies which subsequently came under the scrutiny of investigating agencies like the Central Bureau of Investigation (CBI) and the Enforcement Directorate (EF).