The Enforcement Directorate (ED) is likely to issue notices to over 40 companies which had floated offshore entities as revealed in the Panama Papers exposé by The Indian Express last year. The notices, likely to be issued next week, will be sent to 46 companies which incorporated entities in tax havens through Mossack Fonseca, a Panama company that helps float offshore subsidiaries.
“Prima facie violations of the Foreign Exchange Management Act are visible in the case of these companies. They are being served notices to explain irregularities found, “ an ED official said.
The development comes days after the agency provisionally attached assets to the tune of Rs 10.35 crore in the form of mutual funds belonging to a company owned by former IPL chairman Chirayu Amin. ED has alleged that Amin and his family violated FEMA through dealings of a British Virgin Islands company owned by them.
ED is probing these cases as part of the investigation into revelations made in Panama Papers by the multiple agency group formed by the Ministry of Finance. The documents reveal particulars of 426 people and entities who opened offshore entities with help from Mossack Fonseca. I-T department has found 147 of these cases to be actionable where prima facie evasion of tax is suspected.
According to Central Board of Direct Taxes, investigations have till now detected over Rs 790 crore in undisclosed income.