Investigations taken up by Indian law enforcement agencies against specific allegations of over 500 Indians named in the Panama Papers’ expose are still at a "preliminary stage".
Further course of action depends upon the outcome of investigations in respective cases, official sources said.
Nearly five months have lapsed since the Income-Tax Department sent notices to every Indian whose name had appeared in the Panama Papers’ expose, which had set off a global furore.
It may be relevant to note that the revelations made against Indian persons did not contain information regarding financial transactions such as offshore bank account details or offshore investments.
The International Consortium of Investigative Journalists—a Washington-based organisation that reportedly made the revelations dubbed as Panama Papers—had mentioned a caveat on its website that it should not be assumed that everyone whose name appeared in Panama Papers was involved in tax avoidance or evasion.
It was pointed out that there could be legitimate reasons for setting up entities in offshore jurisdictions and many people declare it to their tax authorities when required.
Among those Indians whose names cropped up in the leaked documents were corporate leaders (including DLF promoter KP Singh and Indiabulls owner Sameer Gehlaut) and leading celebrities (including actors Amitabh Bachchan and Aishwarya Rai).
The investigations now being made by the Indian law enforcement agencies include making requests to the foreign jurisdictions’ concerned for sharing specific information under the treaties that India may have signed with those jurisdictions.
It may be recalled that the Centre had to deal with the Panama Papers expose constituted a multi-agency group for facilitating co-ordinated and speedy investigations in the case of Indian persons allegedly having undisclosed foreign assets and whose names are reportedly included in Panama Papers leaks.
This group consisted of the officers of investigation division of the Central Board of Direct Taxes, Foreign Tax and Tax Research Division of CBDT, Enforcement Directorate, Financial Intelligence Unit and Reserve Bank of India.
Closely behind British Virgin Islands, the Central American country of Panama has been the second most popular domicile for the anonymous shell companies controlled by the rich and famous around the world, including national leaders and celebrities.
On July 15 this year, Panama conveyed to the OECD, a club of rich nations, its intention to form part of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC), which is now seen as "gold standard" for co-operation in tax administration.
However, under the MAC, Panama said it will not take up information exchange obligations automatically, but on request, extending the network simultaneously with some 100 countries.
The commitment to automatic exchange remains only with those countries with which Panama decides to do so bilaterally, the Panama Government had then said.
The MAC is the most comprehensive multilateral instrument available for all forms of tax co-operation to tackle tax evasion and avoidance, and guarantees extensive safeguards for the protection of taxpayers’ rights. Already 98 other countries including India and jurisdictions have joined the Convention.