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Jaitley asks ED to use penal powers ‘expeditiously’

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He also said non-compliance of tax laws has always hit larger public & national interest


Speaking at the ED, he called on the agency to “strictly” enforce law to help the exchequer raise legitimate revenue.


He felt non-compliance of laws has always hit the larger public and national interest.


“And that is why the revenue department and the have a very important role to play,” he emphasised. “There is an expectation of compliance and in the event of non-compliance, there is the power of penalising that the has. This power has to be expeditiously used whenever violations are detected.”


Stating the government has given citizens the right to deal in foreign exchange with a sense of trust, he said serious offence of money laundering, including using hawala channels, flight of capital out of the country, round tripping of funds and creation of shell companies to avoid taxes have become a “very standardised practice”.


Jaitley said these violations are not difficult to detect and scrutiny of filing with registrar of companies can also lead to the detection.


“The entire route of multi-layering through which the money laundering takes place… it is matter of a few minutes to detect how the violation takes place,” he cautioned.


The termed money laundering, round tripping, evasion and creation of shell companies as a serious offence as the money meant for eduction, healthcare, rural development is being taken away.


“Our target has to be to make sure India as it evolves from a developing to developed economy (also changes) from a non-compliant society to a highly-compliant society. Once that were to happen, I think the fear of the law and the fear of the consequences visiting us itself will ensure compliance takes place,” he said.


Jaitley referred to technological advances, saying technology has provided tools to detect violations, and provisions under the and the have rules of evidence that can help take cases to the logical conclusion.

Jaitley asks ED to use penal powers ‘expeditiously’

He also said non-compliance of tax laws has always hit larger public & national interest

He also said non-compliance of tax laws has always hit larger public & national interest

Speaking at the ED, he called on the agency to “strictly” enforce law to help the exchequer raise legitimate revenue.


He felt non-compliance of laws has always hit the larger public and national interest.


“And that is why the revenue department and the have a very important role to play,” he emphasised. “There is an expectation of compliance and in the event of non-compliance, there is the power of penalising that the has. This power has to be expeditiously used whenever violations are detected.”


Stating the government has given citizens the right to deal in foreign exchange with a sense of trust, he said serious offence of money laundering, including using hawala channels, flight of capital out of the country, round tripping of funds and creation of shell companies to avoid taxes have become a “very standardised practice”.


Jaitley said these violations are not difficult to detect and scrutiny of filing with registrar of companies can also lead to the detection.


“The entire route of multi-layering through which the money laundering takes place… it is matter of a few minutes to detect how the violation takes place,” he cautioned.


The termed money laundering, round tripping, evasion and creation of shell companies as a serious offence as the money meant for eduction, healthcare, rural development is being taken away.


“Our target has to be to make sure India as it evolves from a developing to developed economy (also changes) from a non-compliant society to a highly-compliant society. Once that were to happen, I think the fear of the law and the fear of the consequences visiting us itself will ensure compliance takes place,” he said.


Jaitley referred to technological advances, saying technology has provided tools to detect violations, and provisions under the and the have rules of evidence that can help take cases to the logical conclusion.


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Press Trust of India

Business Standard

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