The Central Bureau of Investigation (CBI) inquiry into the “bribe for minimising tax liability” scandal has turned the spotlight on the twilight world of shady fixers, powerful businessmen and corrupt Income Tax Department officials in Kerala.
Documents submitted in court by the CBI painted an unflattering portrait of the department. The nefarious activities of its top officials have made the “institution a cynosure of corruption in the public eye.”
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The involvement of more senior I-T officials, including the Chief Commissioner of Income Tax himself, was under investigation.
The CBI said the suspect officials routinely threatened businessmen with re-opening their I-T assessment of earlier years, surprise I-T surveys and imposition of unreasonably high tax liabilities to pressurise them to pay bribe.
They minimised the tax burden of businessmen who met their demand. Certain auditors, chartered accounts and businessmen acted as “conduits” for their corruption. The middlemen needed to be identified. They also held or managed the ill-gotten wealth of the corrupt officials. The electronic communication between the suspects and the auditors need to be collected and analysed to establish their criminal link.
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The documents also opened a window to the high life enjoyed by the suspect I-T officials. One hoarded contraband liquor in his house to host his superiors and curry favour with them.
Others regularly stayed in hotels, resorts and apartments owned by rich assesses. The suspects also leaned on well- heeled businessmen to underwrite their family vacations and air travel. Many lived in rent free accommodation paid to by affluent tax payers in their places of posting.
Most received valuables as gifts from businessmen. Some regularly went on foreign trips paid for by rich tax payers in their jurisdiction.
The CBI said that Principal Commissioner Sailendra Mamidi, the prime suspect alone “was enriched by Rs.40 lakhs to Rs.50 lakhs in a short span of three months”.
The undue benefit gained by the suspect and the consequent loss to the exchequer need to be estimated. The ill gotten assets required to be confiscated.