BUSINESS

Hiding foreign assets to be a ‘very risky affair,’ Sinha

Cooperation among countries and sharing of information is the key to unearthing illicit money stashed in safe havens, says Jayant Mr. Sinha

Cooperation among countries and sharing of information is the key to unearthing illicit money stashed in safe havens, says Jayant Mr. Sinha  

Indian government will start receiving information of overseas assets from other nations and failure to disclose them will become a “very risky” affair from 2017, Minister of State for Finance Jayant Sinha said.

Cooperation among countries and sharing of information is the key to unearthing illicit money stashed in safe havens, Mr. Sinha said. “Non-disclosure of foreign assets will increasingly become a very risky affair for tax payers ... strict bank secrecy has ended, and a new environment of transparency is now operational,” Mr. Sinha said while inaugurating the sixth meeting of the Group on Automatic Exchange of Information (AEOI).

The Income Tax Department is setting up a robust information security mechanism by constituting an Information Security Committee to safeguard the confidentiality of data received from foreign countries, Mr. Sinha said.

“India is an early adopter of Common Reporting Standard and committed to adopting it by 2017. We have taken a number of new steps to implement the standards so that we can transmit the first information related to calendar year 2016 to treaty partners in September 2017,” he added.

From September 30 onwards, India began to receive financial information pertaining to Indians doing business or having accounts in the U.S. under the Foreign Account Tax Compliance Act (FATCA), and will begin to receive similar information from several other countries from 2017.

The government’s recent declaration window for foreign assets and income yielded only 638 declarations amounting to Rs.3,770 crore, a miniscule portion of the estimated amount.



Govt. says it will maintain confidentiality of data received from foreign countries



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