Almost eighteen months after Panama Papers leak, another massive trove of secret financial data has been leaked by the International Consortium of Investigative Journalists (ICIJ). The data on how big corporatess and ultra-rich individuals moved money to and from 19 tax havens to evade taxes was initially obtained by German newspaper Suddeutsche Zeitung.
The leak, called the Paradise Papers, contains 13.4 million documents from two leading firms in offshore finance. Most of the data leak came from Appleby, a Bermuda-based legal services provider, that facilitated setting up of offshore firms with low or zero tax rates. Singapore-based Asiaciti was the other firm that helped wealthy to move money to tax havens.
India ranks 19th out of 180 countries in terms of the number of names in the offshore data leak. A total of 714 Indians have been named, The Indian Express reported. News outlets worldwide partnered International Consortium of Investigative Journalists (ICIJ) to bring out stories on how politicians, multinationals, celebrities and uber-rich individuals use trusts, foundations and shell companies as front to hide their cash from tax authorities.
The leak has revealed names of famous personaliries like Queen Elizabeth II, lead vocalist of U2 band Bono and American singer Madonna. The Paradise Papers put the lid off on how about $13 million of the Queen's private money was invested offshore into funds in the Cayman Islands and Bermuda by the Duchy of Lancaster, which handles investments for her 500 million pounds private estate.
Commenting on the leaks, Appleby said it was "satisfied that there is no evidence of any wrongdoing, either on the part of ourselves or our clients", adding: "We do not tolerate illegal behaviour."
Is there any Indian???
Corporate lobbyist Niira Radia, whose named emerged in the Radia Tapes was also named .Funds amounting to over $1.5 billion were allegedly diverted using four offshor subsidiaries of United Spirits Limited India, when fugitive tycoon Vijay Mallya owned the company. After Diageo group bought USL India from Mallya, it underwent a restructuring process to get rid of these three intermediate subsidiaries and ended up waiving the $1.5-billion debt owed by these subsidiary companies.
Role of SEBI Now
Markets regulator Sebi will look into alleged fund diversion and corporate governance lapses at various listed firms and their promoters, including those linked to Vijay Mallya, named in the leaked 'Paradise Papers'.
While some entities linked to Mallya are already being probed by Sebi and other agencies, any fresh disclosure in the leaked documents made public by ICIJ (International Consortium of Investigative Journalists) would be thoroughly looked into, senior officials said.
The disclosures about other listed firms and those associated with them or their promoters would also be looked into for any irregularities including about corporate governance and disclosure norms, the officials added.
Officials maintained that mere presence of any Indian entity in an offshore tax-friendly jurisdiction may not amount to violation of laws, but non-disclosure about such entities and routing of funds to them could be ascertained only after a thorough investigation.
To start with, the stock exchanges and the regulator would ask the listed companies concerned to provide details about any offshore entities like them, which would be then matched with the statutory and regulatory disclosures made by those companies including in annual reports and other filings.
Sebi will also coordinate with other regulators and government agencies, while information would be sought from foreign regulators if required, one official said, while adding that a structured multi-regulatory approach could be discussed at FSDC (Financial Stability and Development Council) or other such forums.
Bollywood connection to this also??
The Indian Express report also said that Bollywood actor Sanjay Dutt's wife Dilnashin Sanjay Dutt, also known as Manyata, allegedly held several positions in a Bahamas-registered firm Nasjay Company Limited. A spokesperson for Manyata Dutt said: "As per the requirements of provisions of Income-tax Act, 1961, all the properties, company or body corporate or shares in any company are declared in the balance sheet."
Minister of State for Civil Aviation Jayant Sinha
The Indian Express report alleged that records of offshore legal firm Appleby show MoS Civil Aviation Jayant Sinha served as Director of D.Light Design. The report alleged that Sinha did not mention this in his declaration to the Election Commission when he contested the Lok Sabha polls in 2014.
Reference : Business Today
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