I-T dept to tap Interpol in pursuit of tax dodgers and their secret assets
Income Tax (I-T) department has set the ground to tap Interpol for information on the current whereabouts, identity, and hidden assets of tax dodgers.
A standard operating procedure has been circulated for initiating requests to Interpol, the world's largest international police organisation with 194 member countries, sources told ET. While tax evasion is a criminal offence and may attract penalty and even imprisonment, the I-T department does not seek the help of Interpol in going after tax fraud offenders.
However, learning from past experiences, the tax office believes that accessing the latest information on such fugitives-their locations, front entities, and details of newly acquired assets-would help to freeze bank accounts and other assets faster.
«A mechanism for sending requests to Interpol before launching a formal criminal investigation, would make it easier for tax authorities to take the fight to the doors of the tax evaders who have fled the country,» said Ashish Karundia, founder of the CA firm Ashish Karundia & Co.
In seeking co-operation of other countries, central government agencies use tools like 'Mutual Legal Assistance' and 'Letter Rogatory' (LR). India has MLA treaties with around 42 countries. While MLA requests are made by central authority of one country to its peer in another country, and can only be made to countries with which India has entered into treaties or agreements, LRs, which are issued by an Indian Court on the request of the investigating officer or agency, can be sent to
