Countering BJP leader L K Advani's charge that the UPA government has done little to bring back illegal money of Indian citizens stashed in secret foreign banks, Union Finance Minister Pranab Mukherjee today said the government was fully occupied with the matter and has taken all steps in this regard.
Denying charges that the UPA government was going slow in taking action against illegal money of Indian citizens stashed away in secret Swiss banks and other tax havens, Mukherjee said in a statement in a press meeting here that such reports were 'completely incorrect'.
He said that the BJP has submitted the report of its task force in this regard to him and to the Prime Minister, but there was nothing new in it. "We are fully seized of the issue and have taken all necessary steps," he said.
He said at the G-20 meeting in London the Prime Minister had specifically raised the issue of sharing information (relating to tax compliance) and bringing tax havens and non-cooperating undertakings under close scrutiny.
Advani had said last week that the NDA, if voted to power, would initiate "vigorous action" in 100 days to bring back thousands of crores of rupee stashed away by Indian nationals in secret Swiss accounts and tax havens.
Mukherjee criticised the previous NDA government for not notifying the Prevention of Money Laundering Act, 2002, during its tenure till 2004
He also said that India had been mounting pressure on the Financial Action Task Force (FATF) and other similar regional bodies under its umbrella like Asia Pacific Group on Anti-Money laundering and counter financing of terrorism.
He said that after amendments to the Prevention of Money Laundering Act were passed by Parliament last February, the matter was taken up at the FATF plenary held in Paris where they have agreed to mutual evaluation which was a prerequisite for granting of membership.
The evaluation is likely to take place in the third or fourth quarter of 2009, he said and hoped that India would get FATF membership.
He also refuted the charge that India was unwilling to gather information from Germany which has a list of Indian citizens who have deposits in LGT Bank, Liechtenstein.
After India took up the matter with that country, Germany has reiterated the secrecy obligations under the tax treaty while handing over the information. "So, the Government of India is not in a position to publicly disclose the content," he said.
Mukherjee said that despite consistent pressure, Switzerland had refused to share information on tax related matters on the ground that domestic interest was not involved or that it violated bank secrecy laws.
