Panama Papers have bought at least 500 Indians in the frame after the International Consortium of Investigative Journalists has carried out the secret mission. The Government has ordered a multiagency probe in the entire Panama Papers Less. However, the chances of prosecution and the outcome of the probe is as bleak as the black money probe. Routing the investment to the offshore companies by virtue of shareholders or incorporators in the Tax Heaven Countries is not so easy to trace. Here are the reasons why Panama Papers Probe may result in nothing.
Norms to float a company in Overseas
There are some countries that are very strict for the KYC (Know Your Client) norms. However, there are some that are liberal. If the RBI norms are considered, the Liberalized Remittances Scheme allows even a minor to remit up to 1.65 Crores each year under self-declaration. That amount equivalents to $250,000 and that is huge. The purposes can medical treatment, studies, buying properties in overseas, holding shares in overseas companies and the combinations. So, the limitation of the law may itself come in between the Panama Papers.
Evidence of Wrong Doings
It is not very easy to gather information from the foreign countries. The options are limited and ineffective. The experts believe that Letter Rogatory is a valid option where a court can request another court overseas for the evidences.
As per the data and information in the Business Standard, the limitations of the Probe Agencies are the biggest reasons for the weak chances of the result. There is Black Money Law, the first list of Swiss HSBC Bank for Black Money Holders of 628 have yielded no result. The next list that featured almost 1195 unique resident of India is still pending. The sum of the actionable amount is almost 30,000 Crores according to Government Data. The Central Board of Direct Taxes (CBDT), Central Board of Excise and Customs (CBEC) and Enforcement Directorate(ED) have not been able do much on Black Money Cases and there are very less chances that it will make some impact on Panama Papers.
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