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SIT verifying outflow of illicit funds

The Special Investigation Team has asked the Directorate of Revenue Intelligence (DRI) to verify to what extent the Global Financial Report’s assertion that illicit financial flows worth $505 billion left the country between 2004 and 2013 is correct.

“The Global Financial Integrity … has estimated that illicit financial flows out of India for the period 2004-2013 to be to the tune of $505 billion. The SIT obtained detailed calculations of country-wise illicit financial flows for each of these years from Global Financial Integrity. Thereafter, the details have been sent to the Directorate of Revenue Intelligence on February 8, 2016 and the DRI has been asked to verify the extent to which the calculations are correct,” the government said in a notification on Monday.

“The government has to show it is serious about black money, and so it will do these investigations. However, any estimate of the quantum of illicit money incorporates a number of assumptions. It is impossible to accurately ascertain how much money has gone. Much of the money goes into real estate transactions, and so doesn’t remain in banks,” M. Govinda Rao, Professor Emeritus at the National Institute of Public Finance and Policy, told The Hindu .

Sharing tax info

The Indian government has entered into several bilateral agreements with other countries to share tax information on a regular basis so as to clamp down on black money and the non-declaration of overseas assets and incomes.

India is also a signatory of the U.S. government’s Foreign Account Tax Compliance Act, which enables automatic sharing of financial information on a regular basis.



It is impossible to accurately ascertain how much money has gone, says expert



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