 "IT Dept surveys HSBC office; bank fears penalties")
The Income Tax Department has conducted a ‘survey’ operation at the head office of HSBC bank in Mumbai in connection with the unaccounted money probe against it and certain Indians, who held accounts in the bank’s Switzerland branch. Sources said sleuths drawn from the investigation and assessment wings of the department visited the bank’s office in the Fort area in Mumbai and, starting Sunday, made “inquiries” related to their probe against the global banking giant and its operations.
They said the bank had been issued notices in this regard earlier and the latest action was part of its “survey” operation where tax officials visit the business premises of an entity under probe. Contacted for the bank’s response, an HSBC India spokesperson said: “We have cooperated continuously with the Indian authorities and continue to do so.”
Sources said that I-T officials have seized some documents related to the bank’s Indian operations during the operation that ended on Monday, even as summons were issued by the department to some top executives of its Indian branch.
This case relates to some non-resident Indians, facing investigation in the US for alleged violation of American tax laws.
Giving an update on the case in its annual report published on Monday, HSBC said it was cooperating with the relevant authorities, while adding it was possible that other tax administration, regulatory or law enforcement authorities would also initiate or enlarge similar investigations or regulatory proceedings. “Based on the facts currently known, there is a high degree of uncertainty as to the terms on which they will be resolved and the timing of such resolutions, including the amounts of fines, penalties and/or forfeitures imposed on HSBC, which could be significant,” it added.
They said the bank had been issued notices in this regard earlier and the latest action was part of its “survey” operation where tax officials visit the business premises of an entity under probe. Contacted for the bank’s response, an HSBC India spokesperson said: “We have cooperated continuously with the Indian authorities and continue to do so.”
Sources said that I-T officials have seized some documents related to the bank’s Indian operations during the operation that ended on Monday, even as summons were issued by the department to some top executives of its Indian branch.
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Separately, the UK-based bank said it had also received “subpoenas and requests for information” from the US and other authorities with respect to some US-based clients of an HSBC company in India.
This case relates to some non-resident Indians, facing investigation in the US for alleged violation of American tax laws.
Giving an update on the case in its annual report published on Monday, HSBC said it was cooperating with the relevant authorities, while adding it was possible that other tax administration, regulatory or law enforcement authorities would also initiate or enlarge similar investigations or regulatory proceedings. “Based on the facts currently known, there is a high degree of uncertainty as to the terms on which they will be resolved and the timing of such resolutions, including the amounts of fines, penalties and/or forfeitures imposed on HSBC, which could be significant,” it added.