The government has raised tax demand of Rs 5,419 crore on individuals who had undisclosed offshore accounts with HSBC of which around Rs 337 crore has been recovered. Providing an update on the action taken in the HSBC list matter, the revenue department has informed the Public Accounts Committee (PAC) of Parliament that 190 prosecution complaints have been filed against various entities.
The revenue department recently submitted a status report on HSBC foreign accounts to the PAC following queries by its member and BJP MP Nishikant Dubey, who has been vocal in flagging concern about illicit fund flows.
Names of as many as 628 entities, including individuals holding undisclosed foreign accounts with HSBC’s Swiss banking arm, came to the notice of the government a few years back by way of information from French authorities.
Till the end of December 2016, out of the 628, 569 were traced by the government. Of the actionable cases, assessment was completed in 409, as per the submission made by the revenue department. “Undisclosed amount of Rs 8,437 crore has been brought to tax on account of deposits made in unreported foreign accounts. This includes an amount of Rs 1,685 crore assessed on protective basis,” the submission said.
Further, a tax demand of Rs 5,419 crore has been raised in such cases, including demand in protective assessment, it added. According to the finance ministry, after completion of assessment, about Rs 337 crore has been recovered. This excludes money paid after self-assessment of tax.
“Out of the 409 cases in which assessments have been completed, concealment penalty of about Rs 1,287 crore has been levied in 161 cases. Besides, in 72 cases concealment penalty proceedings initiated are pending,” the the finance ministry panel. As per the submission, 190 prosecution complaints have been filed in 77 cases related to the HSBC list.