Business
Black money bill equally tough on abetors, including banks
New Delhi, March 23
In a bid to get back
ill-gotten money stashed by Indians abroad, curb the menace and deter
future such practices, the proposed new law not only seeks stringent
action against perpetrators but also abetors like banks, chartered
accountants, directors and employees.
"In keeping with the
commitment of the government for focussed action on the black money
front, an unprecedented, multi-pronged attack has been launched to root
out the menace of black money," the finance ministry said, seeking to
explain the nuances of the proposed new legislation.
"The
government is confident that this new law will act as a strong deterrent
and curb the menace of black money stashed abroad by Indians," it said
about the bill, the Undisclosed Foreign Income and Assets (Imposition of
Tax) Bill, 2015, tabled in Lok Sabha by Finance Minister Arun Jaitley.
"Abetment
or inducement of another person to make a false return or a false
account or statement or declaration under the act will be punishable
with rigorous imprisonment from six months up to seven years," it said.
"This
provision will also apply to banks and financial institutions aiding in
the concealment of foreign income or assets of resident Indians or
falsification of documents," it said as the bill makes it clear that
proceedings can be initiated both against individuals and against
enitities.
The bill says when an offence is by a company, every
individual in charge of its business at that time will be held guilty.
The deemed deafaulters can also include a managing director, director,
manager, secretary or official if they have shown consent, connivance or
neglect.
"Wilful attempt to evade tax in relation to a foreign
income will be punished with rigorous imprisonment from 3-10 years and
with fine," Jaitley noted the statement of objectives and reasons,
speaking about the liability in such cases.
"Failure to furnish a
return of income though holding a foreign asset, failure to disclose
the foreign asset or furnishing of inaccurate particulars of the foreign
asset will be punishable with rigorous imprisonment for a term of six
months to seven years."
The bill also lists how the monies payable under the act should be recovered.
"Every
person being a manager at any time during the financial year will be
jointly and severally liable for payment of any amount due under in
respect of the company for the financial year, if the amount cannot be
recovered from the company," says a note on clauses attached to the
bill.
"The amount so intimated shall be the first charge on the
assets of the company remaining after payment of the workmen’s dues and
debts due to secured creditors to the extent specified," it says,
speaking about the hierarchy of the lien.
Likewise, a debtor of
the perpetrator can be asked to pay an amount not exceeding the amount
of debt to meet the tax liability. Failure will make the debtor a
defaulter. For this, A debtor is not a person who owes the perpetrator
but also if money is held on account of the perpetrator.