Pandora Papers: Government to probe cases pertaining to alleged offshore dealings

The government on Monday said that it will investigate cases related to 'Pandora papers'. The official spokesperson of CBDT said that the probe will be monitored by a team headed by the Chairman of CBDT. Other representatives of the multi-agency group include the Enforcement Directorate, Reserve Bank of India, Financial Intelligence Unit and Central Board of Direct Taxes.

On Sunday, the Indian Consortium of International Journalists (ICIJ) claimed to have unearthed the alleged offshore secrets of current and former world leaders, politicians and public officials from over 200 countries and territories, including India.

The data is reportedly based on a leak of confidential records of more than 14 offshore services providers that give services to wealthy elites and corporations looking to incorporate shell companies, foundations, trusts and other entities in no-tax or low tax jurisdictions.

The government said that it will engage with foreign jurisdictions for obtaining details in respect of relevant taxpayers and entities. The government is also part of the Inter-Governmental Group that ensures collaboration to effectively address tax risks linked with such leaks.

Notably, in previous similar leaks - ICIJ, HSBC, Paradise Papers and Panama Papers - the centre had enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 to curb undisclosed income and assets by imposing suitable penalties and tax on such income. In Panama and Paradise Papers, the government detected undisclosed credits of Rs 20,352 crore till September 15, 2021.

Pandora Papers leak exposes offshore dealings of wealthy elites

The ICIJ has claimed that it has obtained the trove of over 11.9 million confidential files that contain details of the financial dealings of many super-rich. The report claims to have details of the offshore dealing of six Indians and seven Pakistanis.

"ICIJ’s latest investigation, the Pandora Papers, brings renewed attention to the use of offshore companies by Pakistani political players. This time, the offshore holdings of people close to (Prime Minister Imran) Khan are being disclosed, including his finance minister and a top financial backer,” the findings claim.

The documents also expose offshore dealings of the presidents of Kenya, Ecuador, Ukraine, former British Prime Minister Tony Blair, the King of Jordan among others. The ICJI also claims to have secret records of 130 billionaires from the US, Russia, Turkey and other nations.

(With PTI inputs)