Multi-agency group to probe 'Pandora Papers' revelations

Around 300 Indians are part of the 'Pandora Papers', which includes Anil Ambani, Vinod Adani, Kiran Mazumdar-Shaw, Niira Radia and Sachin Tendulkar,

The Centre on Monday said that relevant investigative agencies will investigate the "offshore secrets of wealthy elites" unravelled in 'Pandora Papers' and the probe will be monitored by a multi-agency group headed by the Chairman of Central Board of Direct Taxes (CBDT).

Around 300 Indians are part of the 'Pandora Papers', which includes Anil Ambani, Vinod Adani, Kiran Mazumdar-Shaw, Niira Radia, Sachin Tendulkar, Jackie Shroff and Satish Sharma among others. Many of those who are named have denied any wrongdoing.

The 'Pandora Papers', obtained by the International Consortium of Investigative Journalists (ICIJ), is claimed to be a 2.94 TB data trove that exposes the offshore entities owned by the wealthy from over 200 countries. It is a leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations and other entities in low or no-tax jurisdictions.

Explained | What is the Pandora Papers exposé?

In a statement, the Ministry of Finance said the government has taken "note of these developments" and the relevant investigative agencies would undertake a probe in these cases and appropriate action would be taken in such cases as per law.

To ensure effective investigation in these cases, the government would also "proactively engage" with other countries for obtaining information in respect of relevant entities. The Government is also part of an Inter-Governmental Group that ensures collaboration and experience sharing to effectively address tax risks associated with such leaks.

"The government has directed today that investigations in cases of Pandora Papers leaks appearing in the media...would be monitored through the Multi Agency Group (MAG) headed by the CBDT Chairman. The MAG will have representatives from CBDT, Enforcement Directorate, Reserve Bank of India and Financial Intelligence Unit," the statement said.

Also Read | Pandora Papers: The latest mega leak on tax-dodging

Following earlier similar such leaks in the form of ICIJ, HSBC, Panama Papers and Paradise Papers, it said, the government has enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with an aim to curb black money, or undisclosed foreign assets and income by imposing suitable tax and penalty on such income. Undisclosed credits of Rs 20,352 crore as on September 15 have been detected in the investigations carried out in the Panama and Paradise Papers.

Kiran Mazumdar-Shaw, Executive Chairperson of biotechnology major Biocon, tweeted, "media stories reporting on Pandora Papers wrongly implicate my husband's offshore trust, which is a bonafide, legitimate trust and is managed by Independent Trustees. No Indian resident holds 'the key' to the trust as alleged in these stories."

Read more: Pandora Papers leak: Here are the biggest revelations

"Tendulkar's attorney said the cricket player's investment is legitimate and has been declared to tax authorities. Shakira's attorney said the singer declared her companies, which the attorney said do not provide tax advantages. Schiffer’s representatives said the supermodel correctly pays her taxes in the UK, where she lives," the ICIJ said.

"Tax havens cost governments around the world $427 billion each year. Developing countries are being hardest hit, proportionately. Corporations and the wealthiest individuals that use tax havens are outcompeting those who don't. Tax havens also help crime and corruption to flourish," private watchdog Oxfam India said.

Abolishing tax havens can go a long way towards ensuring that governments actually have the access to tax revenue they need to fund quality public expenditure, Oxfam India CEO Amitabh Behar said.

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