The Finance Ministry doesn’t have any information regarding the estimate of black money in the Swiss Bank for the last ten years. It was a written reply by Finance Minister Pankaj Chaudhary in Lok Sabha.
Union Minister of State of Finance Pankaj Chaudhary also said that they raised the demand of Rs as of May this year. He added that the Union Government detected an undisclosed amount of several crores. 8,216 crore. The Finance Ministry revealed an approximate value of undisclosed income saw so far.
- As per finance ministry data, as of 31.05.2021, assessment orders under Section 10(3)/10(4) of the Black Money Act, 2015 have been passed in 166 cases; they also raised a demand of Rs 8,216 crore.
- Government brought undisclosed income of Rs. 8,465 crore of tax and levied a penalty of Rs 1,294 crore in connection with the HSBC cases.
- Undisclosed income of Rs 11,010 crore (approx.) has been detected in ICIJ (International Consortium of Investigative Journalists) cases.
- In the cases related to the Panama Papers, the Government detected undisclosed credit of Rs. 20,078 crore (approx.).
- In the Paradise Papers Leaks cases, the Government detected undisclosed credits of Rs. 246 crore (approx.)
The Minister assured that Income Tax Department takes appropriate action under relevant laws against the tax evaders. Such action under direct tax laws includes searches, surveys, enquiries, assessment of income, levy of tax, interest, penalties, etc. and filing of prosecution complaints in criminal courts, wherever applicable.
The Government took measures to bring back black money.
- To specifically focus on the issue of black money, Government brought enactment of ‘The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015’.
- Constitution of the Special Investigation Team (SIT) on Black Money under Chairmanship and Vice-Chairmanship of two former Judges of Hon’ble Supreme Court.
- Continues engagement with foreign Governments for the exchange of information.
- To combat tax evasion globally, India has formed the Automatic Exchange of Information.
- India has entered into an information-sharing agreement with the USA under the USA’s Foreign Account Tax Compliance Act.
Why Tax evaders choose Swiss banks?
Switzerland remains the first preference of tax evaders due to its low taxation for foreign corporations and individuals. It still offers the wealthy some benefits for living and keeping their money there. Still, Switzerland is no longer a place to evade tax earlier due to pressure from the United States and the European Union (EU).
Contrary to the infamous image of Switzerland, it does not allow foreign individuals to live and bank in its borders tax-free. But wealthy individuals can pay a low, lump-sum option on the money they save inside the country, and the Government considers their taxes paid. To simplify matters, the Government bases the number of taxes foreigners owe seven times their monthly rent. They also tax households rather than individuals, and this simplifies, and sometimes lowers, taxation for wealthy couples.
Swiss financial institutions have a long history of holding the secrets of the wealthy, Almost since the time from the French kings in the early 18th century. In recent economic history, Swiss banks put up under pressure from activist groups and nation-states to reveal the details of accounts created by members of the Nazi regime during World War II. Also, in response to the global financial crisis of 2008, Swiss banks have caved to pressure from the United States and the European Union to reveal the financial secrets of wealthy account holders.