Wednesday, February 9, 2011

Govt spells out measures to unearth black money stashed abroad

NEW DELHI: Black money parked in tax havens abroad will be taxable income under the Direct Taxes Code Bill, the Centre told the Supreme Court today, spelling out a host of measures to retrieve it.

The government also informed the apex court that it has completed negotiations for Tax Informations Exchange Agreement (TIEA) with 10 countries where the money is believed to have been stashed.

The ten countries are Bahamas, Bermuda, British Virgin Island, Isle of Man, Cayman Island, British island of Jersey, Monaco, St Kitts and Nevis, Argentina and Marshall Island.
It said Cabinet approval has been granted in relation to eight of these agreements.

"It is submitted that the central government has proposed new provisions for unearthing black money in the Direct Taxes Code Bill by defining taxable assets as inclusive of the deposits in banks located outside India in case of individuals and such bank deposits not recorded in the books of account in case of others," an additional affidavit filed by the Ministry of Finance said.

The affidavit comes in the wake of searching questions posed by a bench of justices B Sudershan Reddy and S S Nijjar on a PIL filed by eminent jurist Ram Jethmalanai and others, seeking retrieval of black money stashed in banks abroad. 

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