1. Hidden Money, Hidden Resources Dinero oculto, recursos ocultos Curbing IFFs & Information Exchange- The Indian Context Pooja Rangaprasad

2. Hidden Money, Hidden Resources Dinero oculto, recursos ocultos Illicit (Black) Money in India Series of Government Committees (since 1956) to analyse extent of illicit money generated in India – 2014: Special Investigation Team (SIT) constituted as per Supreme Court orders to investigate offshore bank accounts of Indians Lack of clarity: – How much illicit money generated in India? (25% - 80% of GDP) – How much of that leaves the country? – How much comes back into the country as ‘foreign investment’ (round tripping through tax havens)? Misguided focus on ‘recovery’ of illicit money alone – Offshoot: Focus on Indians holding Swiss bank accounts

3. Hidden Money, Hidden Resources Dinero oculto, recursos ocultos Exchange of Information 2011 Cannes Summit: Indian Prime Minister urges G20 to take the lead in agreeing to automatic exchange of information India- Mauritius: – No agreement still on tax treaty revision but improvement in information exchange. – Mauritius has committed to exchange information automatically 2013: Cyprus- first jurisdiction ‘notified’ as a jurisdiction that does not engage in exchange of information (provision in the Income Tax Act) India- Swiss Negotiations – Letters from Indian Finance Minister – Urges Switzerland to join Early Adopters Group on AEoI

4. Hidden Money, Hidden Resources Dinero oculto, recursos ocultos Questions on treaty confidentiality and secrecy clauses Indian Tax Administration: ‘As a matter of policy, India prefers that exchanged information may be shared with other Government agencies’ Supreme Court unhappy with refusal to reveal names of Indians with offshore bank accounts SIT also investigating limitations of these clauses

5. Hidden Money, Hidden Resources Dinero oculto, recursos ocultos India’s roadmap on AEoI India is part of the Early Adopters Group on AEoI Supportive of Global Forum’s pilot project to assist developing countries in implementing the standard Insist that AEoI should only be on fully reciprocal basis (difficulty negotiating a reciprocal FATCA) Opportunity for developing countries to modernise their tax systems

6. Hidden Money, Hidden Resources Dinero oculto, recursos ocultos Thank you rpooja@cbgaindia.org