UN route easier to trace black money
New Delhi,Oct 30 (TruthDive): Black money stashed abroad could have been easily got back if India had been a signatory to a UN convention of double taxation treaty agreements (DTAA).
By signing to this convention, India can renegotiate DTTA and bring it in line with the country’s taxation law and has a way to bring out names of account holders in banks abroad. This convention was brought in to help developing nations track those who evade laws and stash away money in developed countries.
By signing the convention, the member countries can formulate a law which makes the confidentiality clause not operational. Financial analysts say that the list given to SIT through the court was something that it had before.
150 out of 627 were already traced out who had paid their fines and are no more treated illegal. But, identities of others were not known. Most of the accounts were closed as soon as the hunt began two years back. Some have very little money in the account.
BJP’s claim of huge stash that could turn around Indian economy will remain as a election rhetoric. Sources cite an example of an account of Arpee Gems Trust in Singapore branch of HSBC. The details got from an employee who stole the data were made public and by the time India got the identity of the account holder said to be owning a hospital in Mumbai, the account was closed. The said account holder’s name figures in a German bank list too. IT sleuths could not get evidence to pin down the identity of the account holder. Black money amounting close to Rs 100 million was deposited in this account.
HSBC has a section known as South Asia diaspora where account holders are classified as settlers or beneficial owners. The minimum balance is $1 million. The bank stance is that the account holder is responsible for the tax liabilities and not the bank. It goes by the laws of the country from where it operates and does not give information to government.
HSBC branches are in countries which have secrecy clause and they do not accept any court order from outside their country. The bank operates from another set of countries who have signed DTAA. If India goes back to those countries which includes USA to tweak the agreement to facilitate getting information on accounts in their countries to flush out black money, then many would pull out of trade relations.
The Union government is worried over the court order and action to flush out black money.
