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Political Play
CA Dr Sunil Gupta
This isn't the BJP way; clear the clouds completely on black money 28 October, 2014
When BJP was not in power, it was quite clear about bringing back the huge piles of black money stashed abroad. The leaders, from the top wing to the bottom, seemed promising and goal-oriented in their approach, and the general public that voted in favour of saffron too anticipated that what belongs to the common man and the country would ultimately be brought back.
The government has started filing charges and prosecution has commenced against some account holders. Three names have already come out in the open, who have their accounts in some foreign banks. But, this is not the end of the list, as it comprises of a number of other such account holders. This selective approach of only declaring few names, has raised many voices.

In many talks, we can hear of charges against a former union minister. The general public is keen to know why can?t the government probe all the Indians as are included in the lists and as a swift measure, why can?t the Income Tax officials be ordered to scrutinize the returns and records of such account holders to find whether the money in foreign bank accounts is legitimate or illicit.

CBDT, Financial Intelligence Unit, Central Economic Intelligence Bureau, and CBI are all distinct wings of the central government that have the powers and caliber to assess the legitimacy of money deposited/ stashed abroad. Then we have a lengthy list of legislators, senior advocates, and retired judges who can study the agreements signed by the Indian government with foreign nations and can advise what can be done and what is forbidden.

In an endeavor to make helpful changes in international agreements, the Swiss? rulers are thinking over including such norms in bilateral treaties so that the tax evading done by individuals and corporates is slammed. Information sharing post such changes will become easier and fast. The Indian government, which had the issue of black money as one the most votes-attracting matter, is either feeling the pressure of corporates or is dealing with the matter with deficient attention.

For any misperceptions, if there are, in the DTAAs with respect to sharing of account holders? names, must be sought out with the help of skilled interpreters. To know whether the money lying abroad has generated from legal/ illicit source, Income Tax officials, who can assess the same, can be handed over the list of names and the outcomes can be expected in a week or two. 

Also, valid and positive amendments can be made to the existing bilateral agreements with safe haven nations to assure that receipt of information on black money account holders becomes uncomplicated in the future. All in all, the BJP squad will have to realize the keenness of the general public as well as the Apex Court on this subject-matter.

In the UPA reign too, black money was one of the most crucial matters. Reasons like covenants of the Double Taxation Avoidance Agreements (DTAA) and pressure from the governments of nations where the suspected money could have been stashed were given by the then rulers for not disclosing data, even when received from some sources including the names of account holders in Liechtenstein Bank and HSBC. 

Stating similar reasons, the BJP government attempted to steer clear from being a detrimental ruling body for corporates and politicians who have used safe havens for keeping illicit money. In a recent turnover, senior Supreme Court lawyer Ram Jethmalani has urged that DTAAs are no valid cause for keeping the names of black money holders secret.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of In case you have a opposing view, please click here to share the same in the comments section.
About The Author
A Chartered Accountant by profession and Director on the board of Punjab National Bank (PNB), General Insurance Corporation of India (GIC) and Rural Electrification Corporation Limited (REC). Dr. Sunil Gupta is working flawlessly for the economic and social prosperity of India. His Linkedin and twitter handles are @cadrsunilgupta. Facebook page is CADrSunil.
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