CAs under ambit of black money bill

The government's black money bill seeks to bring the financial intermediary community, including chartered accountants and lawyers, within the ambit of the tough provisions of the proposed law, in addition to those who keep unaccounted wealth in foreign countries.

Under the new law, there are two instances when an individual would be punishable with
imprisonment and fine: "If a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false and which he either knows or believes to be false or does not believe to be true...". And, "if a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to tax payable under this Act, which is false and which he either knows to be false or does not believe to be true..."

Reacting to these provisions, M R Venkatesh, a chartered accountant in Chennai, said, "These provisions, by their wording, become absolutely applicable to chartered accountants, financial consultants, wealth managers, bankers, lawyers and in fact all financial intermediaries engaged by a person."