Taxing the untaxed IX: Is India blissfully ignorant to the menace of shell companies?
Shell companies are intrinsic to the global and Indian economy, but they require a high level of oversight to prevent them from becoming conduits for illicit financial flows
- Mar 27, 2020,
- Updated Mar 27, 2020 5:59 PM IST
Not just the Panama Papers and Paradise Papers, investigated by the International Consortium of Investigative Journalists (ICIJ), India's own investigating agencies like Enforcement Directorate (ED), Central Bureau of Investigation (CBI), Income Tax Department (ITD) and Serious Fraud Investigation Office (SFIO) have found enough evidence that shell companies are now an essential part of the economy.
That, however, poses a great challenge for the Indian regulatory authorities. Without a better understanding of their activities and effective oversight, the chances of shell companies being misused are very high. Here are some recent instances.
Not just the Panama Papers and Paradise Papers, investigated by the International Consortium of Investigative Journalists (ICIJ), India's own investigating agencies like Enforcement Directorate (ED), Central Bureau of Investigation (CBI), Income Tax Department (ITD) and Serious Fraud Investigation Office (SFIO) have found enough evidence that shell companies are now an essential part of the economy.
That, however, poses a great challenge for the Indian regulatory authorities. Without a better understanding of their activities and effective oversight, the chances of shell companies being misused are very high. Here are some recent instances.