News appears in The Economic Times, Page No.13 dated 09.03.2013
I-T Dept Asks People to Come Clean on Bogus Bills
M PADMAKSHAN MUMBAI
The Income Tax Department on Friday issued a public appeal to those who have availed bogus bills (hawala bills) for the purpose of evading tax to come clean and pay the tax that escaped the tax net.
This is the first time the Income-tax department made such an appeal, despite the fact that furnishing bogus
bills have been historically the modus operandi for escaping the tax net. According to the information gathered by the Income-tax department, furnishing bogus bills for a commission that ranges from 0.5% to 2% has evolved into an industry over a period of time. Though not explicitly
stated, the press release implies that those who voluntarily come forward and declare that bogus bills have been used and pay the differential tax, the taxpayer will be spared the penalty that ranges from 100% to 300% of the amount sought to be evaded. A senior Income-tax official told ET "Under Section 273 (A) of the Income Tax Act, the commissioners of Income-tax are vested with powers to waive off penalty. This section is likely to be invoked in those cases where taxpayers volunteer to confess using bogus bills in the past". He further said: "It also implies that the penalty provisions will certainly be invoked if the Income-tax department detects tax evasion using hawala bills". The Sales Tax department of Maharashtra has passed on to the Income-tax department thousands of cases in which bogus bills have been used. In all, the amount involved in these cases is over . 20,000 crore. For the past one and half years, the Income-tax department has been investigating the hawala bill case, a tax official said.
I-T Dept Asks People to Come Clean on Bogus Bills
M PADMAKSHAN MUMBAI
The Income Tax Department on Friday issued a public appeal to those who have availed bogus bills (hawala bills) for the purpose of evading tax to come clean and pay the tax that escaped the tax net.
This is the first time the Income-tax department made such an appeal, despite the fact that furnishing bogus
bills have been historically the modus operandi for escaping the tax net. According to the information gathered by the Income-tax department, furnishing bogus bills for a commission that ranges from 0.5% to 2% has evolved into an industry over a period of time. Though not explicitly
stated, the press release implies that those who voluntarily come forward and declare that bogus bills have been used and pay the differential tax, the taxpayer will be spared the penalty that ranges from 100% to 300% of the amount sought to be evaded. A senior Income-tax official told ET "Under Section 273 (A) of the Income Tax Act, the commissioners of Income-tax are vested with powers to waive off penalty. This section is likely to be invoked in those cases where taxpayers volunteer to confess using bogus bills in the past". He further said: "It also implies that the penalty provisions will certainly be invoked if the Income-tax department detects tax evasion using hawala bills". The Sales Tax department of Maharashtra has passed on to the Income-tax department thousands of cases in which bogus bills have been used. In all, the amount involved in these cases is over . 20,000 crore. For the past one and half years, the Income-tax department has been investigating the hawala bill case, a tax official said.
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