November 20, 2009 1:34 PM

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No verifiable information available on money deposited in foreign banks: Govt

The government today said that there is no verifiable information available about the money allegedly parked in banks outside the country in violation of the related laws. In a written reply to a question on the issue in the Lok Sabha, the Finance Minister Mr. Pranab Mukherjee said that the Central Board of Direct Taxes has alerted its investigating units to pursue on priority basis if any information is received on undisclosed money illegally deposited in banks abroad. <br/> <br/>He said that the Directorate of Enforcement takes appropriate action whenever any specific case comes to light but it does not make any roving enquiries. He also said that the Double Taxation Avoidance Agreements with foreign countries contain provisions relating to exchange of information for tax purposes and if any information is received, action is initiated to tax the income and wealth not disclosed before the tax authorities. He however said that tax treaties do not have the provisions of seeking the repatriation of money illegally deposited abroad. The Finance Minister said that tax treaty partners can also be asked to assist in collection of tax claims if the tax treaty with that country contains specific provisions in this connection. He said that the government has taken up the issue directly and through diplomatic channels to ask treaty partner countries for including the provision for bank related information. He said that the some of these countries have responded and first round of negotiations has already taken place in one case. <br/>

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