Just after the media reports, the Government took prompt action, saying a multi-agency group or MAG probing the Panama Papers leak will monitor the probe on ‘Paradise Papers’ as well. The MAG will aslo take “swift action” on the ‘Paradise Papers’ on the financial holdings abroad that list a number of Indian entities, according to the release issued by Central Board of Direct Taxes (CBDT) on Monday.
“The investigation units of the income tax department across the country have been alerted to take note of revelations for immediate appropriate action,” it said. The CBDT said 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,” the CBDT, the policy-making body for the IT department, said in a statement.
It said the government has directed that investigation in cases of Paradise Papers will be monitored by a re-constituted MAG, headed by the Chairman CBDT and having representatives from the CBDT, the Enforcement Directorate, the Reserve Bank of India and the Financial Intelligence Unit (FIU).
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.
The panel will first go through the details of income tax returns filed by the 714 Indian individuals and entities reportedly named in the Paradise Papers and subsequently take action, on a case-to-case basis, official sources added. However, the CBDT said it is still to receive full details of the latest disclosures. It said the names of only a few Indians (entities and individuals) have appeared so far in the media. The Paradise Papers relate to an investigation into offshore and banking assets of individuals and entities carried out by the Indian Express in collaboration with the International Consortium of Investigative Journalists (ICIJ).
Even the ICIJ website (www.Icij.Org) has not yet released the names and other particulars of all the entities, it said. “The website of ICIJ suggests that information will be released in phases and structured data connected to the Paradise Papers investigation will be released only in the coming weeks on its Offshore leaks Database,” a CBDT statement said.