SIT reveals black money whitewash: Investigation team says 289 of 628 names in list of foreign accounts have no amounts mentioned, and 122 are repeat entries

The black money brouhaha is turning rapidly into a whitewash special.

Part of the first report of August 2014 submitted by the Supreme Court-appointed Special Investigation Team (SIT) to probe the issue of black money stashed in foreign banks reveals very little fire behind all the smoke.

It says that 289 of the names in the list of 628 persons or entities holding accounts abroad have no amount mentioned against their name, and no less than 122 entries in the list are repeats.

There is information about persons holding the accounts, but no details regarding bank statements and account opening are furnished, the report states.

The lack of information and absence of details about the amounts held by 289 account holders could become a stumbling block for investigators, sources say.

This dead-end seems to have prompted the  SIT to ask the government to renegotiate Double Taxation Avoidance Agreements (DTAAs) with countries since it has often become an obstacle in addressing the issue.

While probing the black money matter, the SIT received information under the Double Taxation Avoidance Convention by the Central Board of Direct Taxes relating to certain account holders in HSBC bank Geneva.

The SIT in its first report has suggested amendments be made to these pacts so as to address the main issue of sharing information on the amounts of money maintained in foreign countries by Indians.

“The amended provision should ensure that there is sharing of information with the enforcement agencies which are competent to deal with these cases and try it, may be for imposing penalty,” the report says.

It was the United Progressive Alliance first and the National Democratic Alliance government now that have repeatedly told Supreme Court of their inability to furnish more information because they are bound by the taxation agreements that forbid disclosure of names.

SIT Chairman Justice (Retd) M.B. Shah and Vice-Chairman Justice (Retd.) Arijit Pasayat directed the Central Board of Direct Taxes to prepare a draft amendment to the DTAAs so that information is shared keeping the interest of the country in mind.

The Chairman and Vice-Chairman have also asked the agencies to explore whether any action can be initiated within the existing framework if countries do not cooperate and are not forthcoming in sharing information.