WEB DESK
New Delhi/Mumbai:
Securities and Exchange Board of India (SEBI) and the Income Tax department on Monday said that they will be scrutinizing the so-called Paradise Papers—the documents obtained by a global network of investigative journalists—to see if any Indian individual or companies engaged in wrongdoing.
While the income tax authorities will investigate companies evading taxes by using complex offshore structures, Sebi will be scrutinising disclosures.
According to reports, the Central Board of Direct Taxes (CBDT) has also asked its investigation wing to re-open the income tax returns filed by the companies and individuals named in the leaks to see if any of their past income have gone un-taxed, CBDT chairman Sushil Chandra said.
“We have briefed all directors general of investigations across the country about the expose by the International Consortium of Investigative Journalists (ICIJ). These reports have not named all the companies and directors in those companies. Wherever names are available, we will immediately check their income tax returns to see if there is any underreporting of income,” said Chandra.
The CBDT chairman also said that once more details and names come out, the tax department will take appropriate action.
The Indian Express reported on Monday that as a partner of the international consortium of investigative journalists (ICIJ), it probed into all the documents the consortium obtained that had an India connection and said that 714 Indian companies and individuals are listed in the documents.
Separately, Sebi has initiated an examination of the listed companies mentioned in the Paradise Papers for disclosure lapses and fund diversion. “Sebi will ask stock exchanges to ask for information from the listed companies on their offshore entities and this will be matched with their statutory disclosures,” said a Sebi official, who asked not to be named. These disclosures are made by companies in their annual reports and exchange filings.
