Indian govt quizzed over tax haven billions
NEW DELHI — India's Supreme Court on Thursday accused the government of being reluctant to publish details about billions of dollars of untaxed private and business money held in overseas bank accounts.
The issue of so-called "black money" is the latest corruption scandal to hit the Congress-led government, which has been hit by a slew of graft allegations over recent months including a massive telecoms sale fraud.
Estimates for the amount of money deposited illegally in overseas bank accounts and tax havens by wealthy Indians and companies range from $500 billion to $1.4 trillion.
"You know the names, (you know) where the money is lying," judge S. Reddy told solicitor general Gopal Subramanium during a hearing responding to petition filed by anti-corruption campaigners.
"What are the sources of the money? Where has the money come from? It might be because of arms deals, smuggling, narcotics, drug trafficking or something else," he said.
"What action have you taken against them when you came to know that they have stashed money in foreign banks?"
The government insisted this week that international agreements and other legal hurdles prevent it from exposing the identity of Indian tax evaders.
It recently filed an affidavit with the court restricting information on money deposited by 26 unidentified Indians in a Liechtenstein bank.
Finance Minister Pranab Mukherjee on Tuesday said India had completed negotiations on tax information exchange agreements with 10 tax havens -- including Bermuda -- and had initiated talks with 65 other countries.
Opposition parties have been quick to pounce on the various allegations of corruption, and have accused the government of seeking to cover up the scale of the "black money" problem.
Copyright © 2011 AFP. All rights reserved.
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