Mumbai: The Income Tax department has sent prosecution notice to Reliance Group Chairman Anil Ambani under the Black Money Act. The Income Tax Department has sought permission regarding the same. The Income Tax department has sought this permission in the case of tax evasion of Rs 420 crore on over Rs 814 crore of undeclared assets in Anil Ambani’s Swiss bank account.
According to a report by news agency PTI, the Income Tax Department has accused Anil Ambani of deliberate tax evasion. Anil Ambani has not disclosed the amount held in the foreign bank account to the Indian Income Tax or relevant departments. A show cause notice was issued to Anil Ambani in the beginning of August in this case.
Anil Ambani may be prosecuted under Sections 50 and 51 of the Black Money Imposition of Tax Act 2015. This section provides for imprisonment for 10 years with fine.
In the notice issued to Anil Ambani, the Income Tax Department has asked him to reply by August 31. PTI tried to contact Anil Ambani in this regard. But contact could not be made. Anil Ambani is accused of tax evasion on undeclared assets abroad from the financial year 2012-13 to 2019-20.
According to the Income Tax Department notice, Ambani is the economic contributor and beneficial owner of Diamond Trust and Northern Atlantic Trading Limited Company based in the Bahamas. Northern Atlantic Trading Limited Company was registered in the British Virgin Islands. This place is considered a paradise for tax evaders.
What information did the Income Tax Department get?
The Bahamas-based Diamond Trust operates a company called DreamWorks Holdings Inc. This company has opened an account in a Swiss bank. $32,095,600 was credited to this account on December 31, 2017. According to the notice, the trust received initial funding of $25,040,422. The Income Tax department says the funds were sent from Anil Ambani’s personal account. Ambani surrendered his passport during KYC to open the trust in 2006. The income tax department said that the beneficiaries of these trusts also include their families.
Anil Ambani will have to pay crores of tax
The company, registered in the British Virgin Islands in July 2010, opened an account at the Bank of Cyprus in Zurich. The Income Tax Department has alleged that Anil Ambani is the ultimate beneficial owner of the company and its funds. The company received $10 million in 2012 from PUSA, a company registered in the Bahamas. Anil Ambani was its beneficiary. According to tax officials, the two Swiss bank accounts have a total of Rs 814 crore on which a tax of Rs 420 crore is applicable.
