Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: due date for vat payment :: cpt :: VAT Audit :: empanelment :: ACCOUNTING STANDARDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: VAT RATES :: TDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4%
« General »
 Tax Department To Launch 2nd Phase Of Bank Accounts' Scrutiny Next Month
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well
 Why salaried class deserves standard deduction
 3 new taxes that Modi government could introduce, but won't
 Tax gains may showcase demonetisation windfall

Banks in tax havens like Switzerland and Mauritius to run checks on Indians looking to open black money account
June, 19th 2015

Banks in tax havens such as Switzerland and Mauritius are seeking to put in place rigorous checks to ensure that they keep out Indians looking to open black money accounts. This comes as the Narendra Modi government implements a tough regime to root out unaccounted wealth.

Overseas banks have approached tax and anti-fraud investigators at consultancies to help them draw up guidelines in this regard. "Before accepting a customer's deposit or opening his account, the banks would run a full-fledged investigation on the individual and his business," said a senior partner at a consultancy investigating such cases. "These investigations take anywhere between one week to a month."

Black money is usually held in the name of fictitious companies or individuals, something the banks have been turning a blind eye to thus far. Henceforth, banks will seek tax returns of the account holder for the past three years before opening an account or accepting deposits.

"The fight against black money is prompting banks to adopt measures to safeguard themselves and ensure that they are not charged with abetting financial crime," said KV Karthik, senior director, financial advisory services, Deloitte Touche Tohmatsu India.

At least 25 banks have approached Indian consultants in the past month as part of such an exercise, said four people aware of this. The banks want to set up systems that will alert them to a customer's background, income tax filings and legal record.

This is apart from know your customer norms on par with those mandated by the Reserve Bank of India. "Frankly, these banks in tax havens do not care much about RBI's guidelines if they do not have offices in India. What has changed is that now India would be signing tax treaties with more and more countries where Indians tend to stash their black money," said a senior partner at a consultancy helping a bank set up such a mechanism. The source of funds and tax records will be examined before deposits are accepted. Further, private investigators and tax experts have been roped in to create processes that will warn banks that are approached by customers not just in these tax havens but anywhere in the world.

"Banks are ensuring that that they get information on account holders, beneficial owners of the account and also understand the source of funds," Karthik said. "This information will be necessary not just to comply with the anti-money laundering guidelines but also with the new tax compliance regulations." Many Indians have been withdrawing money from Swiss banks. Funds held by Indians fell 10% in 2014 to Rs 12,615 crore according to figures released by the Swiss authorities.

The Swiss Banks' Association (SBA) told ET in an email that banks in that country already follow international standards. Swiss banks aim at managing only "tax compliant assets," it said. Experts said black money is increasingly finding its way back to India through round tripping. "Most of this money is being invested in Indian real estate and some other companies," said a partner in the corporate investigation department at one of the major consultancies. "This is the same money which was earlier stashed in banks."

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions