Black money: 'Supreme Court needs to be on same page for better global cooperation'

Written by ENS Economic Bureau | New Delhi | Updated: Nov 1 2014, 14:23pm hrs
Black moneyThe Centre has placed a list of names of 627 Indian account holders in HSBC bank, Geneva before the Supreme Court in black money case. (Reuters)
Amidst various countries raising concerns over co-operating and sharing confidential taxpayer information with the Indian government in the wake of the Centre handing them over to the Supreme Court, an official said that the move was necessitated in order to bring the judiciary on the same plank as the government so that they can continue to receive co-operation from other countries.

Stating that the government took a measured risk, the official said that it asked the Supreme Court to reconsider its interpretation so that the judiciary is on the same plane as the executive at the international fora and that further co-operation is obtained without any problems of interpretation of treaties.

The official said that there is difference in interpretation of confidentiality clause (meaning of public court proceeding) by the Supreme Court and how they are interpreted internationally. While the SC interprets that information received from foreign countries can be used in hearings too, the international interpretation of confidentiality clause is, information received from countries can only be used for tax purposes and tax assessment/enforcement, said the official.

He further said that if the SCs interpretation of the confidentiality clause remains different from the international interpretation then there may be delays in signing the Inter-Governmental Agreement with the US for automatic exchange of information.