Source: http://www.privacyworld.com/
Privacy World - The WORLD'S SHREWDEST PRIVACY NEWSLETTER
Germany offers black money data, India dithers.
NEW DELHI: Investigators in India might have their best chance yet to
trace those Indians who have stashed away millions in the tiny tax
haven of Liechtenstein, a small landlocked country between Austria and
Switzerland, provided the Manmohan Singh government asks for the
information on offer.
The dope on hundreds of rich Indians who have black money parked in
Liechtenstein could be made available to the authorities here as the
German government, which has obtained a list of account holders at
Liechtenstein's LTG Bank, is willing to part with the names.
Several countries including the US, the UK, Canada, Italy, Norway,
Sweden, Finland and Ireland have already used the opportunity to zero
in on their citizens who have evaded taxes and smuggled their wealth
to the principality, the sixth-smallest country in the world. But
Transparency International says India has maintained 'a stoic silence
over the issue and has not approached the German government for this
data'.
Expressing concern over the Indian government's apparently
lackadaisical attitude in getting after offenders who have cheated the
tax authorities of millions of dollars is quite surprising and the
Indian chapter of TI - an organization campaigning to reduce
corruption - has urged the government to take all necessary steps to
seek the data.
Admiral R H Tahiliani, chairman if TI India and a former navy chief,
said: ''This money belongs to the people of India and it is possible
that it has been tucked away in this distant country by those who have
acquired it illegally and are now evading taxes.
"There should be complete transparency and accountability about this
money and it is for the government to find this out and inform
people," Admiral Tahiliani, said, referring to the black money stashed
away abroad.
Indeed, the offer looks too good to refuse. It is a bit like being
served secrets on a platter and if the government does not waste time
looking a gift horse in the mouth, it could get data that might
otherwise never be accessed given the laws that protect tax havens
that often require specific proof of criminality.
In fact, the dice is invariably loaded against investigators - for
example the Hindujas were able to delay proceedings in the Bofors case
by challenging each application filed by CBI.
Suspecting that the government's chariness could stem from fears that
influential politicians and industrialists might be compromised by the
Liechenstein data, TI has, in a statement, said: "It is alleged that
this money belongs to rich and powerful politicians, industrialists
and stock brokers and that is why the reluctance on the part of
government of India (to get details from Germany)."
Liechtenstein, like Switzerland, St Kitts, Canary Islands, Antigua and
Bahamas, has been a haven for wealthy people to hide their ill-gotten
wealth away from the prying eyes of tax authorities. Referring to
reports, TI mentioned that German intelligence agency - BND - has
details of about 800 clients of LTG Bank - run by Liechtenstein's
ruling dynasty - and prosecutors are using this information to target
suspected tax evaders.
"The ministry of finance and PMO have, however, not shown much
interest in finding out about those who have their lockers on the
secret banks of Liechtenstein which prides itself in its banking
system," TI said.
Referring to such banking systems, TI also said that secretive and
non-transparent tax havens could be used for money that is related to
drugs and terrorism. These accounts have been frequently used to
channel money for purchase of arms.
Reprinted from The Times of India. |
