Spanish tax authorities are investigating whether payments from FC Barcelona to Lionel Messi&#39;s foundation were used to help the player evade taxes, Spanish daily El Mundo reported on Saturday.

The newspaper, which has acquired Football Leaks documents, reported that the club gave the foundation &quot;at least 12.7 million euros ($15.5 million) between 2010 and 2016&quot;.

The paper said that the payments from Barca represented 71.5 percent of the foundation&#39;s revenue between 2013 and 2016.

The foundation says on its website that it &quot;was created in 2007 with the wish that all children should have the same opportunities to make their dreams come true, and to promote equality in education and health.&quot;

Between 2010 and the official registration of the foundation in June 2013, the club reduced the corporate tax they paid on the money by 35 per cent, in line with rules on donations to charities.

Those payments raised the suspicions of the authorities which, in January 2016, began to investigate whether the money&nbsp;had been &quot;remunerative&quot; and evaded corporate and income tax. In April 2016, tax investigators visited the Barcelona offices -- not for the first time in recent years.

After the official scrutiny began, the club stopped making the deductions from their donations and started withholding 45 per cent for taxes suggesting, the newspaper said, that the payments &quot;were considered part of the salary&quot; of the Argentine star.

El Mundo said that the club had urged Messi, already being investigated for a 4.1 million-euro tax fraud relating to his image rights, to &quot;regularise the donations to his foundation&quot;. In the image rights case, Messi and his father, Jorge, were found guilty in &nbsp;2016.

El Mundo said that, by law, 70 percent of a charity&#39;s revenue should be spent on the aims for which it was created but a report in another Spanish newspaper, ABC, found the foundation&#39;s accounts were full of gaps but included large sums spent on external consultants, rent and refurbishing its offices or transferred to its branch in Argentina.&nbsp;

According to documents examined by El Mundo, a tax settlement was paid to the Spanish treasury, in theory by Messi but ultimately by Barca, which made up the amount in a complex transaction days before the player signed a new contract last November.

That contract, which runs until 2021, will pay Messi more than 100 million euros a year including salary and image rights according to information published on Friday by the European Investigation Collaborations, which includes El Mundo.

&nbsp;

Spanish tax authorities scrutinise Messi's foundation to investigate tax fraud

Spanish tax authorities are investigating whether payments from FC Barcelona to Lionel Messi's foundation were used to help the player evade taxes, Spanish daily El Mundo reported on Saturday. The newspaper, which has acquired Football Leaks documents, reported that the club gave the foundation "at least 12.7 million euros ($15.5 million) between 2010 and 2016". The paper said that the payments from Barca represented 71.5 percent of the foundation's revenue between 2013 and 2016. The foundation says on its website that it "was created in 2007 with the wish that all children should have the same opportunities to make their dreams come true, and to promote equality in education and health." Between 2010 and the official registration of the foundation in June 2013, the club reduced the corporate tax they paid on the money by 35 per cent, in line with rules on donations to charities. Those payments raised the suspicions of the authorities which, in January 2016, began to investigate whether the money had been "remunerative" and evaded corporate and income tax. In April 2016, tax investigators visited the Barcelona offices -- not for the first time in recent years. After the official scrutiny began, the club stopped making the deductions from their donations and started withholding 45 per cent for taxes suggesting, the newspaper said, that the payments "were considered part of the salary" of the Argentine star. El Mundo said that the club had urged Messi, already being investigated for a 4.1 million-euro tax fraud relating to his image rights, to "regularise the donations to his foundation". In the image rights case, Messi and his father, Jorge, were found guilty in 2016. El Mundo said that, by law, 70 percent of a charity's revenue should be spent on the aims for which it was created but a report in another Spanish newspaper, ABC, found the foundation's accounts were full of gaps but included large sums spent on external consultants, rent and refurbishing its offices or transferred to its branch in Argentina. According to documents examined by El Mundo, a tax settlement was paid to the Spanish treasury, in theory by Messi but ultimately by Barca, which made up the amount in a complex transaction days before the player signed a new contract last November. That contract, which runs until 2021, will pay Messi more than 100 million euros a year including salary and image rights according to information published on Friday by the European Investigation Collaborations, which includes El Mundo.

Messi's foundation under scrutiny

Income Tax sleuths today conducted searches at 33 premises related to business groups for suspected tax evasion and links to shell companies in Tamil Nadu, a senior official said.

The raids involved four independent assessee groups including a textile firm and a company with interest in real estate.

Also, a firm running a cinema house here and another company that owns a sugar factory were searched.

The operation took place this morning and covered 21 locations in the city and 12 in other parts of Tamil Nadu.

&quot;They (assessee groups) are suspected to be involved in shell companies and tax evasion,&quot; a senior tax official told PTI here.

The searches were launched on the basis of information the income tax department received on the shell companies and data following demonetisation last year, he said.

The I-T department had recently conducted multi-city raids as part of its &#39;Operation Clean Money&#39; and detected undisclosed income of Rs 1,430 crore in respect of ten assessee groups which included those linked to jailed AIADMK leader V K Sasikala, her kin and their associates.

There were in total raids at 33 premises related to business groups for suspected tax evasion and links to shell companies

Income Tax sleuths today conducted searches at 33 premises related to business groups for suspected tax evasion and links to shell companies in Tamil Nadu, a senior official said. The raids involved four independent assessee groups including a textile firm and a company with interest in real estate. Also, a firm running a cinema house here and another company that owns a sugar factory were searched. The operation took place this morning and covered 21 locations in the city and 12 in other parts of Tamil Nadu. "They (assessee groups) are suspected to be involved in shell companies and tax evasion," a senior tax official told PTI here. The searches were launched on the basis of information the income tax department received on the shell companies and data following demonetisation last year, he said. The I-T department had recently conducted multi-city raids as part of its 'Operation Clean Money' and detected undisclosed income of Rs 1,430 crore in respect of ten assessee groups which included those linked to jailed AIADMK leader V K Sasikala, her kin and their associates.

Income Tax department raids business groups in Tamil Nadu

The Indian economy is at a crossroads. The economic restructuring that began with the November 8 announcement of demonetisation, now faces the risk of being derailed by parties with vested interests. The process of demonetisation and the implementation of the Goods and Services Tax are important economic disruptions that can go a long way in overhauling the dilapidated structures of Indian economy.

Critics have suggested that demonetisation could not achieve its declared goal and are, therefore, quick to pronounce it as a monumental failure. The former prime minister even went to the extent of calling the process a &#39;legalised plunder&#39;. It is, however, important to highlight why demonetisation was a critically important disruption that unveiled the depths of the black economy in India.

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<h5>Post-demonetisation, one of the major successes of the exercise has been the identification of additional 56 lakh taxpayers who filed e-ITRs between 1 April and 5 August 2017</h5>
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<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=Post-demonetisation, one of the major successes of the exercise has been the identification of additional 56 lakh taxpayers who filed e-ITRs between 1 April and 5 August 2017" target="_blank">&nbsp;</a></div>
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Post-demonetisation, one of the major successes of the exercise has been the identification of additional 56 lakh taxpayers who filed e-ITRs between 1 April and 5 August 2017, while for the entire period of 2016-17, a staggering 91 lakh new taxpayers were added to the list. The number is expected to rise further with the implementation of complementary tax reforms. An estimated one crore new taxpayers will be contributing to the country&#39;s kitty by 2018.

For those who questioned the rationale of the process on the grounds that 99 per cent of the money came back into the system, it becomes important to highlight that while this may have gone against the government&#39;s initial calculations, the return of currency into the system was not as big a failure as is being made out. On the contrary, as previously unaccounted for money was deposited into the system, a large part of it was taxed, making major contributions to the government&#39;s kitty. The currency trail was, therefore, significant in the identification of the aforementioned pool of new taxpayers, who remained previously untaxed.

The exercise also helped in identifying a remarkable 3 lakh shell companies that were used for diverting funds and committing tax frauds. A crackdown on such companies was an effective anti-money laundering steps that was made possible by the currency trail identified post-demonetisation. While the usual narrative against the exercise uses the benchmark of &ldquo;99% cash returned&rdquo; to chastise the government, the actual benefits accrued from the disruption are brushed aside.

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<h5>The GST helped widen the government&#39;s tax net to incorporate the previously un-taxed business enterprises.</h5>
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</div>

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8 months after demonetisation, the implementation of the GST as an indirect tax reform measure is another very important economic reform taken by the government. The GST helped widen the government&#39;s tax net to incorporate the previously un-taxed business enterprises. The self-corrective mechanisms incorporated in the GST structure, namely, the input tax credits against double taxation helps squeeze the noose around those who used to pass the tax burden onto the customers/consumers but did not pass on the benefits to the government.

Not only has the implementation of the GST acted as a stepping stone towards the creation of a unified market structure, it has also helped the government identify direct taxpayers. It has expanded the indirect tax base to 6.6 lakh new business agents, previously outside the tax net. Besides, the GST has helped in a greater formalisation of the economy; a process that will ensure minimum wages for workers as well as formal work contracts for labourers that will go a long way in mitigating the evil of labour exploitation.&nbsp;

A greater formalisation of the economy will also help small businessmen keep a real-time record of their tax payments, and help them gain greater access to formalised credit options, thus, ending a previously faced constraint on credit-access. A digital record on the financial health of companies will also streamline investments and ultimately work to the benefit of consumers.

It is no surprise then that through the implementation of demonetisation and GST, within a year the government has announced three major capital-intensive schemes: the Saubhagya scheme to provide last mile electric connectivity to rural households, the Bharatmala scheme to upgrade the infrastructure of the country on a mission mode basis, and the bank recapitalisation scheme to improve the health of ailing public sector banks. While none of these schemes are &#39;populist&#39; in the true sense, they still cater to the needs of those on the lowest rung of our socio-economic ladder.

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<h5>The government&#39;s emphasis on long-term economic reforms and socio-economic restructuring will go a long way in ushering in the idea of clean money.</h5>
</blockquote>
</div>

<div class="col-sm-1 blockquote-content">
<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=The government's emphasis on long-term economic reforms and socio-economic restructuring will go a long way in ushering in the idea of clean money." target="_blank">&nbsp;</a></div>
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To further deepen and widen its tax net, the government now must address the issue of high rates of taxes and bring them down to further encourage a voluntary filing of tax returns. The GST structures will need to be worked out so that filing of returns can be done effectively and easily. The government must be credited for putting a robust feedback mechanism in place. This must be used pro-actively to streamline the financial system by the end of this financial year.

For the rest, it must be remembered that no country can survive on an economic model that rests on a parallel system of white and black money. The unhindered flow from white-to-black-to-white has worked to hollow out our economic system. The government&#39;s emphasis on long-term economic reforms and socio-economic restructuring will go a long way in ushering in the idea of clean money. It has also instilled fear among those who choose to evade taxation and boost the morale of those who sustain on purely white incomes. This in itself, is an important moral victory for many.

Demonetisation has instilled fear among those who choose to evade taxation and boost the morale of those who sustain on purely white incomes

The Indian economy is at a crossroads. The economic restructuring that began with the November 8 announcement of demonetisation, now faces the risk of being derailed by parties with vested interests. The process of demonetisation and the implementation of the Goods and Services Tax are important economic disruptions that can go a long way in overhauling the dilapidated structures of Indian economy. Critics have suggested that demonetisation could not achieve its declared goal and are, therefore, quick to pronounce it as a monumental failure. The former prime minister even went to the extent of calling the process a 'legalised plunder'. It is, however, important to highlight why demonetisation was a critically important disruption that unveiled the depths of the black economy in India. Post-demonetisation, one of the major successes of the exercise has been the identification of additional 56 lakh taxpayers who filed e-ITRs between 1 April and 5 August 2017 × Post-demonetisation, one of the major successes of the exercise has been the identification of additional 56 lakh taxpayers who filed e-ITRs between 1 April and 5 August 2017, while for the entire period of 2016-17, a staggering 91 lakh new taxpayers were added to the list. The number is expected to rise further with the implementation of complementary tax reforms. An estimated one crore new taxpayers will be contributing to the country's kitty by 2018. For those who questioned the rationale of the process on the grounds that 99 per cent of the money came back into the system, it becomes important to highlight that while this may have gone against the government's initial calculations, the return of currency into the system was not as big a failure as is being made out. On the contrary, as previously unaccounted for money was deposited into the system, a large part of it was taxed, making major contributions to the government's kitty. The currency trail was, therefore, significant in the identification of the aforementioned pool of new taxpayers, who remained previously untaxed. The exercise also helped in identifying a remarkable 3 lakh shell companies that were used for diverting funds and committing tax frauds. A crackdown on such companies was an effective anti-money laundering steps that was made possible by the currency trail identified post-demonetisation. While the usual narrative against the exercise uses the benchmark of “99% cash returned” to chastise the government, the actual benefits accrued from the disruption are brushed aside. The GST helped widen the government's tax net to incorporate the previously un-taxed business enterprises. × 8 months after demonetisation, the implementation of the GST as an indirect tax reform measure is another very important economic reform taken by the government. The GST helped widen the government's tax net to incorporate the previously un-taxed business enterprises. The self-corrective mechanisms incorporated in the GST structure, namely, the input tax credits against double taxation helps squeeze the noose around those who used to pass the tax burden onto the customers/consumers but did not pass on the benefits to the government. Not only has the implementation of the GST acted as a stepping stone towards the creation of a unified market structure, it has also helped the government identify direct taxpayers. It has expanded the indirect tax base to 6.6 lakh new business agents, previously outside the tax net. Besides, the GST has helped in a greater formalisation of the economy; a process that will ensure minimum wages for workers as well as formal work contracts for labourers that will go a long way in mitigating the evil of labour exploitation. A greater formalisation of the economy will also help small businessmen keep a real-time record of their tax payments, and help them gain greater access to formalised credit options, thus, ending a previously faced constraint on credit-access. A digital record on the financial health of companies will also streamline investments and ultimately work to the benefit of consumers. It is no surprise then that through the implementation of demonetisation and GST, within a year the government has announced three major capital-intensive schemes: the Saubhagya scheme to provide last mile electric connectivity to rural households, the Bharatmala scheme to upgrade the infrastructure of the country on a mission mode basis, and the bank recapitalisation scheme to improve the health of ailing public sector banks. While none of these schemes are 'populist' in the true sense, they still cater to the needs of those on the lowest rung of our socio-economic ladder. The government's emphasis on long-term economic reforms and socio-economic restructuring will go a long way in ushering in the idea of clean money. × To further deepen and widen its tax net, the government now must address the issue of high rates of taxes and bring them down to further encourage a voluntary filing of tax returns. The GST structures will need to be worked out so that filing of returns can be done effectively and easily. The government must be credited for putting a robust feedback mechanism in place. This must be used pro-actively to streamline the financial system by the end of this financial year. For the rest, it must be remembered that no country can survive on an economic model that rests on a parallel system of white and black money. The unhindered flow from white-to-black-to-white has worked to hollow out our economic system. The government's emphasis on long-term economic reforms and socio-economic restructuring will go a long way in ushering in the idea of clean money. It has also instilled fear among those who choose to evade taxation and boost the morale of those who sustain on purely white incomes. This in itself, is an important moral victory for many.

Demonetisation and GST are not the 'demons' as some argue

The so-called Paradise Papers may sound familiar &ndash; leaked documents from a law firm that specialises in offshore services reveal how the global elite avoids paying taxes. Even the name has the same ring to it as last year&rsquo;s Panama Papers expose. But the Paradise Papers are different, reflecting the complexity of the global offshore tax system.

Panama is generally considered among tax haven experts as one of the least reformed corners of the offshore world. International rules regarding tax evasion and avoidance are intended to help national governments to pursue their own offenders, but the Panama Papers revealed that the country was being used primarily by the business and political elites of countries like Russia, China and many more in Latin America and Asia; countries where the governments are closely linked to business and which are less likely to use tools provided by new international rules to pursue offenders. Hence, relatively few Americans or Europeans were caught in the Panama story. And Mossack Fonseca, the law firm at the centre of the leak has since been discredited.

The Paradise Papers reveal the goings on of the elites of the offshore world &ndash; this time in the supposedly highly-regulated havens of the Cayman Islands, Bermuda, Singapore and the like. All places that received a fairly clean bill of health during the OECD peer review process only a few years ago. The law firm at the centre of this new leak, Appleby, insists there is &ldquo;no evidence of wrongdoing&rdquo; in any of the revelations.

Nonetheless, the Paradise Papers will tell us a lot about the activities of business and political elites of well-regulated countries like the US and UK &ndash; implicating big multinationals such as Nike and Apple, and individuals including the British Queen.

1. Tax avoidance is a booming industry

Clearly, jurisdictions such as the Caymans Islands and Bermuda that levy no income tax, capital gains tax, VAT, sales, wealth or corporate tax, still attract a lot of businesses. Why, for instance, has the Duchy of Lancaster, the Queen&rsquo;s private portfolio, invested in two offshore funds, in Cayman and Bermuda? After all, the Queen pays tax only voluntarily.

A more charitable interpretation is that any big investor who is seeking to diversify their portfolio would inevitably end up using offshore funds. The papers show that about &pound;10m (US$13m) of the Queen&rsquo;s private money was invested offshore &ndash; a very small percentage of her wealth. There is nothing illegal about this but the ethics of it have been questioned.

Practically, the entire wealth investment industry &ndash; the industry that invests for the rich and the wealth of our world &ndash; operates through the offshore world. And the reason why is simple. Each fund or transaction, or aeroplane or yacht, or whatever that one cares to register in the Caymans or Bermuda, is not subject to tax. And it&rsquo;s hidden from public view.

2. Secrecy prevails through trusts

Despite a spate of new regulations, the Paradise Papers show that anyone who wishes to conceal their affairs from competitors, allies, governments or the public can still do so with great ease. And they can do so through the facilities of a &ldquo;trust&rdquo;, an archaic Anglo-Saxon instrument that serves as a foolproof shield from scrutiny.

We have learned, for instance, that Wilbur Ross, the US secretary of commerce, had commercial links to Vladimir Putin&rsquo;s family, which operated through a system of linked trusts located in various offshore jurisdictions. I do not think that even the Mueller inquiry in the US into the Trump administration&rsquo;s links with Russia could have pierced the veil of secrecy offered by offshore trusts.

But the leaked documents from law firm Appleby reveal that any complex business deals that would involve concealment and subterfuge would work their way through trusts. It is high time we do something about these trusts.

3. Highly complex tools are used

The Paradise Papers show how complex financial innovations such as the use of derivatives and financial swaps arrangements, can be used for tax avoidance. This is an area of avoidance that is normally not well understood and scantily studied.

New research colleagues and I are conducting, however, has found that cross-currency interest rate swaps are used pervasively in tax minimisation mechanisms. It is difficult to detect and involves a parent and subsidiary companies swapping a loan in one currency to another. This swaps the risks and the interest rate of the original currency for the subsidiary&rsquo;s &ndash; a legitimate risk minimisation instrument. At the same time, this facilitates moving funds offshore to low tax jurisdictions.

4. The law needs to change

Many professional service firms operate through offshore jurisdictions. They all claim to be highly professional, following not only the letter but also the spirit of the law.

But if these firms are not directly liable for the activities of their clients, the offshore world will continue to thrive. These firms take advantage of regulatory loopholes to arbitrate between different rules and jurisdictions in order to minimise taxation. The question is for how long such practices are going to be considered legitimate.

The Paradise Papers reveal how little the world really knows about the level of tax avoidance that takes place. UK citizens, for instance, can legally invest in offshore funds and set up companies in those havens. But they must reveal these holdings to the tax man. We do not know whether those named in the papers did, and we do not know whether the tax authorities will do something about those who did not. We only know that a lot is going through offshore. The Paradise Papers show that, despite promises of the opposite, opacity is still pervasive in the offshore world.

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/four-things-the-paradise-papers-tell-us-about-global-business-and-political-elites-86946" rel="nofollow" target="blank">original article</a>.

Unlike the Panama Papers, the latest leak shines a light on the elites of the offshore world

The so-called Paradise Papers may sound familiar – leaked documents from a law firm that specialises in offshore services reveal how the global elite avoids paying taxes. Even the name has the same ring to it as last year’s Panama Papers expose. But the Paradise Papers are different, reflecting the complexity of the global offshore tax system. Panama is generally considered among tax haven experts as one of the least reformed corners of the offshore world. International rules regarding tax evasion and avoidance are intended to help national governments to pursue their own offenders, but the Panama Papers revealed that the country was being used primarily by the business and political elites of countries like Russia, China and many more in Latin America and Asia; countries where the governments are closely linked to business and which are less likely to use tools provided by new international rules to pursue offenders. Hence, relatively few Americans or Europeans were caught in the Panama story. And Mossack Fonseca, the law firm at the centre of the leak has since been discredited. The Paradise Papers reveal the goings on of the elites of the offshore world – this time in the supposedly highly-regulated havens of the Cayman Islands, Bermuda, Singapore and the like. All places that received a fairly clean bill of health during the OECD peer review process only a few years ago. The law firm at the centre of this new leak, Appleby, insists there is “no evidence of wrongdoing” in any of the revelations. Nonetheless, the Paradise Papers will tell us a lot about the activities of business and political elites of well-regulated countries like the US and UK – implicating big multinationals such as Nike and Apple, and individuals including the British Queen. 1. Tax avoidance is a booming industry Clearly, jurisdictions such as the Caymans Islands and Bermuda that levy no income tax, capital gains tax, VAT, sales, wealth or corporate tax, still attract a lot of businesses. Why, for instance, has the Duchy of Lancaster, the Queen’s private portfolio, invested in two offshore funds, in Cayman and Bermuda? After all, the Queen pays tax only voluntarily. A more charitable interpretation is that any big investor who is seeking to diversify their portfolio would inevitably end up using offshore funds. The papers show that about £10m (US$13m) of the Queen’s private money was invested offshore – a very small percentage of her wealth. There is nothing illegal about this but the ethics of it have been questioned. Practically, the entire wealth investment industry – the industry that invests for the rich and the wealth of our world – operates through the offshore world. And the reason why is simple. Each fund or transaction, or aeroplane or yacht, or whatever that one cares to register in the Caymans or Bermuda, is not subject to tax. And it’s hidden from public view. 2. Secrecy prevails through trusts Despite a spate of new regulations, the Paradise Papers show that anyone who wishes to conceal their affairs from competitors, allies, governments or the public can still do so with great ease. And they can do so through the facilities of a “trust”, an archaic Anglo-Saxon instrument that serves as a foolproof shield from scrutiny. We have learned, for instance, that Wilbur Ross, the US secretary of commerce, had commercial links to Vladimir Putin’s family, which operated through a system of linked trusts located in various offshore jurisdictions. I do not think that even the Mueller inquiry in the US into the Trump administration’s links with Russia could have pierced the veil of secrecy offered by offshore trusts. But the leaked documents from law firm Appleby reveal that any complex business deals that would involve concealment and subterfuge would work their way through trusts. It is high time we do something about these trusts. 3. Highly complex tools are used The Paradise Papers show how complex financial innovations such as the use of derivatives and financial swaps arrangements, can be used for tax avoidance. This is an area of avoidance that is normally not well understood and scantily studied. New research colleagues and I are conducting, however, has found that cross-currency interest rate swaps are used pervasively in tax minimisation mechanisms. It is difficult to detect and involves a parent and subsidiary companies swapping a loan in one currency to another. This swaps the risks and the interest rate of the original currency for the subsidiary’s – a legitimate risk minimisation instrument. At the same time, this facilitates moving funds offshore to low tax jurisdictions. 4. The law needs to change Many professional service firms operate through offshore jurisdictions. They all claim to be highly professional, following not only the letter but also the spirit of the law. But if these firms are not directly liable for the activities of their clients, the offshore world will continue to thrive. These firms take advantage of regulatory loopholes to arbitrate between different rules and jurisdictions in order to minimise taxation. The question is for how long such practices are going to be considered legitimate. The Paradise Papers reveal how little the world really knows about the level of tax avoidance that takes place. UK citizens, for instance, can legally invest in offshore funds and set up companies in those havens. But they must reveal these holdings to the tax man. We do not know whether those named in the papers did, and we do not know whether the tax authorities will do something about those who did not. We only know that a lot is going through offshore. The Paradise Papers show that, despite promises of the opposite, opacity is still pervasive in the offshore world. This article was originally published on The Conversation. Read the original article.

What ails global business and elites? Secrecy

Indian shares ended lower for a second consecutive session on Tuesday on concerns over a broad government crackdown on suspected illegal offshore transfers and tax evasion after an unexpected regulatory order by the capital markets regulator.

Financial and consumer stocks were top contributors to the fall.

The benchmark BSE&nbsp;Sensex&nbsp;closed down 0.80 per cent at 32,014.19, its lowest close since July 20.

The broader NSE Nifty ended 0.78 per cent lower at 9,978.55, its lowest close in two weeks.

Financials dragged after a broad government crackdown on suspected illegal offshore transfers and tax evasion after an unexpected regulatory order by the capital markets regulator

Indian shares ended lower for a second consecutive session on Tuesday on concerns over a broad government crackdown on suspected illegal offshore transfers and tax evasion after an unexpected regulatory order by the capital markets regulator. Financial and consumer stocks were top contributors to the fall. The benchmark BSE Sensex closed down 0.80 per cent at 32,014.19, its lowest close since July 20. The broader NSE Nifty ended 0.78 per cent lower at 9,978.55, its lowest close in two weeks.

Sensex dips further after govt crackdown on tax evasion

Soccer star Cristiano Ronaldo is set to appear in court in Madrid today over accusations of evading millions of euros in taxes.&nbsp;

Prosecutors have accused Ronaldo of having evaded 14.7 million euros ($17.3 million) in tax.

They accuse the Portuguese footballer of taking &quot;advantage of a company structure created in 2010 to hide income generated in Spain from his image rights from tax authorities&quot;.

The prosecutors allege that Ronaldo only declared 11.5 million euros of Spanish-related income from 2011 to 2014, while he really earned close to 43 million euros during the time.&nbsp;

He is also accused of &ldquo;voluntarily&rdquo; refusing to include 28.4 million euros in income associated with the sale of his image rights for the 2015 to 2020 period to a Spanish company.

In his defence, Ronaldo has said his &quot;conscience is clear&quot;.

His agent&#39;s company Gestifute has also denied any &quot;fiscal set-up&quot; and said, &quot;the player didn&#39;t hide anything&quot;.

If put on trial and found guilty, the Real Madrid striker risks &quot;a fine of at least 28 million&quot; euros and a possible jail-term of three-and-a-half years, the Gestha union of experts at Spain&#39;s Inland Revenue has said, AFP reported.

Ronaldo is accused of evading 14.7 million euros ($17.3 million) in tax

Soccer star Cristiano Ronaldo is set to appear in court in Madrid today over accusations of evading millions of euros in taxes. Prosecutors have accused Ronaldo of having evaded 14.7 million euros ($17.3 million) in tax. They accuse the Portuguese footballer of taking "advantage of a company structure created in 2010 to hide income generated in Spain from his image rights from tax authorities". The prosecutors allege that Ronaldo only declared 11.5 million euros of Spanish-related income from 2011 to 2014, while he really earned close to 43 million euros during the time. He is also accused of “voluntarily” refusing to include 28.4 million euros in income associated with the sale of his image rights for the 2015 to 2020 period to a Spanish company. In his defence, Ronaldo has said his "conscience is clear". His agent's company Gestifute has also denied any "fiscal set-up" and said, "the player didn't hide anything". If put on trial and found guilty, the Real Madrid striker risks "a fine of at least 28 million" euros and a possible jail-term of three-and-a-half years, the Gestha union of experts at Spain's Inland Revenue has said, AFP reported.

Football: Ronaldo to appear in court today over tax evasion claims

Panama is suspending its probe into the Panama Papers, the leak of a legal firm&#39;s files on clients who stored assets in opaque offshore companies, prosecutors said Tuesday.

The records from the Panamanian law firm Mossack Fonseca revealed the names of leaders, politicians, celebrities and wealthy individuals from around the world who used the firm to create offshore entities to hide their assets.&nbsp;

A legal challenge on constitutional grounds required the suspension, the country&#39;s attorney general, Kenia Porcell, told a news conference. It was now up to the Supreme Court to rule on the matter and decide whether the probe should resume, she said.

The Panama Papers scandal erupted in April last year when media reports divulged documents from the massive data dump leaked by an anonymous source to a German newspaper.&nbsp;

Mossack Fonseca has argued that the revelations were illegal and based on stolen information.

The explosive dossier linked some of the world&#39;s most powerful leaders, including Russian President Vladimir Putin, British Prime Minister David Cameron and others to unreported offshore companies.

The revelations led to the resignation of Iceland&#39;s prime minister.&nbsp;

Other prominent people who turned up in the documents include Argentine President Mauricio Macri, footballer Lionel Messi and, most recently, the daughter of Pakistani Prime Minister Nawaz Sharif.

Offshore companies are not in themselves illegal, but the sudden publication of troves of data drew attention to rampant tax avoidance and even money laundering crimes.

(AFP)

A legal challenge on constitutional grounds required the probe into legal firm Mossack Fonseca stop. The supreme court can still continue it

Panama is suspending its probe into the Panama Papers, the leak of a legal firm's files on clients who stored assets in opaque offshore companies, prosecutors said Tuesday. The records from the Panamanian law firm Mossack Fonseca revealed the names of leaders, politicians, celebrities and wealthy individuals from around the world who used the firm to create offshore entities to hide their assets. A legal challenge on constitutional grounds required the suspension, the country's attorney general, Kenia Porcell, told a news conference. It was now up to the Supreme Court to rule on the matter and decide whether the probe should resume, she said. The Panama Papers scandal erupted in April last year when media reports divulged documents from the massive data dump leaked by an anonymous source to a German newspaper. Mossack Fonseca has argued that the revelations were illegal and based on stolen information. The explosive dossier linked some of the world's most powerful leaders, including Russian President Vladimir Putin, British Prime Minister David Cameron and others to unreported offshore companies. The revelations led to the resignation of Iceland's prime minister. Other prominent people who turned up in the documents include Argentine President Mauricio Macri, footballer Lionel Messi and, most recently, the daughter of Pakistani Prime Minister Nawaz Sharif. Offshore companies are not in themselves illegal, but the sudden publication of troves of data drew attention to rampant tax avoidance and even money laundering crimes. (AFP)

Panama Papers: Probe investigating politicians, celebrities storing money in offshore accounts suddenly suspended

As it analyses bank deposits post-demonetisation, the government has found nearly Rs 25,000 crore ($3.7 billion) cash was deposited in dormant bank accounts while an estimated Rs 3-4 lakh (around $44 billion)&nbsp;crore of tax-evaded income could have been deposited into banks during 50-day window provided to get rid of junked Rs 500 and Rs 1000 notes.

A senior official said the Income Tax department has been asked to scrutinise details and send notices to depositors of of Rs 3-4 lakh crore (around $44 billion) on which tax could have been evaded.

&quot;We now have trunkloads of data, analysis of which shows that more than Rs 2 lakh was deposited in over 60 lakh bank accounts post demonetisation. The total amount deposited in these accounts is more than 7.34 lakh crore ($107 billion),&quot; he said.

More than Rs 10,700 crore ($1.5 billion) cash was deposited in different accounts in the North Eastern states since November 9, he said adding the Income Tax department and the Enforcement Directorate &mdash; the country&#39;s economic enforcing agency &mdash; are looking into over Rs 16,000 crore ($2.3 billion) deposited in different accounts of cooperative banks.

Also, it has come to light that Rs 25,000 crore ($3.6 billion) cash was deposited in dormant bank accounts while nearly Rs 80,000 crore ($11.7 billion) of repayment of loans was done in cash since November 8, 2016 when the government demonetised old 500 and 1000 rupee notes.

Holders of the old currency were given an option to exchange or deposit them in bank accounts till December 30.

&quot;Starting from November 8, 2016 various reports were called for from the banks based on different threshold of cash deposits made by different categories of persons. The reports were collated and analysed based on intelligence which has been available in the government data bases,&quot; the official said.

After an in-depth analysis, these reports have been disseminated to the Income Tax (I-T) department, the Enforcement Directorate (ED) and other Law Enforcement Agencies.

Of the 60 lakh bank accounts that saw more than Rs 2 lakh ($2,931) of cash deposits, more than 6.80 lakh accounts have found matches in the existing database of various reports available with Government.

&quot;These have been flagged while disseminating to I-T Department,&quot; he said adding the details of cash deposits totalling to more than Rs 10,700 crore (($1.5 billion)&nbsp;in different accounts in the North-Eastern states have also been disseminated.

Also, the I-T department and the ED have been provided with the details of cash deposits of more than Rs 16,000 crore ($2.3 billion) in different accounts of various kinds of cooperative banks. 
 
The deposits of more than Rs 13,000 crore ($1.9 billion) in Regional Rural Banks have also been disseminated.

Besides, &quot;cash deposits in terrorist-affected states have also been disseminated to the concerned law enforcement agencies and appropriate actions have been taken in such cases,&quot; he said.

The official said cash deposits of Rs 2 lakh to Rs 2.5 lakh per account, totalling to Rs 42,000 crore ($6 billion), are found to have common PAN, mobile number or address. The same would be looked into in detail by the Income-Tax department.

The government has got the deposits in Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts analysed in detail and amounts of cash deposited under different threshold in different regions of the country and shared it with the I-T department.

&quot;All cash deposits of more than one lakh rupees in cash under PMJDY accounts would also be looked into, based on the intelligence inputs,&quot; he said.

It has come to the notice of the government that more than Rs 25,000 crore ($3.6 billion) have been deposited in cash in re-activated dormant bank accounts and the details have also been shared with the Income Tax department.

Similarly, nearly Rs 80,000 crore ($11.7 billion) of repayment of loans in cash above a certain threshold post demonetisation has also been shared with law enforcement agencies.

&quot;The Income Tax department has undertaken numerous actions, both intrusive and non-intrusive, based on the intelligence and in turn referred a number of cases for parallel investigation by the ED and CBI. The actions have unearthed non-filers, huge amounts of unaccounted income and shell companies,&quot; the official said without giving details.

The Income Tax department is also undertaking data analysis and comprehensive matching of the huge intelligence inputs with government databases to have a more effective and focused intrusive and non-intrusive actions in the coming days.

&quot;It is already taking actions in cases where cash deposits above Rs 50,000 ($732) have been made without quoting of PAN,&quot; he said.

&quot;The Income Tax department is using tools and its sources to identify each of these persons and is confident that there would a big expansion in the tax base and a quantum jump in direct tax collection,&quot; the official added.

(PTI)

A senior official said the Income Tax department has been asked to send notices to the depositors suspected of evading tax

As it analyses bank deposits post-demonetisation, the government has found nearly Rs 25,000 crore ($3.7 billion) cash was deposited in dormant bank accounts while an estimated Rs 3-4 lakh (around $44 billion) crore of tax-evaded income could have been deposited into banks during 50-day window provided to get rid of junked Rs 500 and Rs 1000 notes. A senior official said the Income Tax department has been asked to scrutinise details and send notices to depositors of of Rs 3-4 lakh crore (around $44 billion) on which tax could have been evaded. "We now have trunkloads of data, analysis of which shows that more than Rs 2 lakh was deposited in over 60 lakh bank accounts post demonetisation. The total amount deposited in these accounts is more than 7.34 lakh crore ($107 billion)," he said. More than Rs 10,700 crore ($1.5 billion) cash was deposited in different accounts in the North Eastern states since November 9, he said adding the Income Tax department and the Enforcement Directorate — the country's economic enforcing agency — are looking into over Rs 16,000 crore ($2.3 billion) deposited in different accounts of cooperative banks. Also, it has come to light that Rs 25,000 crore ($3.6 billion) cash was deposited in dormant bank accounts while nearly Rs 80,000 crore ($11.7 billion) of repayment of loans was done in cash since November 8, 2016 when the government demonetised old 500 and 1000 rupee notes. Holders of the old currency were given an option to exchange or deposit them in bank accounts till December 30. "Starting from November 8, 2016 various reports were called for from the banks based on different threshold of cash deposits made by different categories of persons. The reports were collated and analysed based on intelligence which has been available in the government data bases," the official said. After an in-depth analysis, these reports have been disseminated to the Income Tax (I-T) department, the Enforcement Directorate (ED) and other Law Enforcement Agencies. Of the 60 lakh bank accounts that saw more than Rs 2 lakh ($2,931) of cash deposits, more than 6.80 lakh accounts have found matches in the existing database of various reports available with Government. "These have been flagged while disseminating to I-T Department," he said adding the details of cash deposits totalling to more than Rs 10,700 crore (($1.5 billion) in different accounts in the North-Eastern states have also been disseminated. Also, the I-T department and the ED have been provided with the details of cash deposits of more than Rs 16,000 crore ($2.3 billion) in different accounts of various kinds of cooperative banks. The deposits of more than Rs 13,000 crore ($1.9 billion) in Regional Rural Banks have also been disseminated. Besides, "cash deposits in terrorist-affected states have also been disseminated to the concerned law enforcement agencies and appropriate actions have been taken in such cases," he said. The official said cash deposits of Rs 2 lakh to Rs 2.5 lakh per account, totalling to Rs 42,000 crore ($6 billion), are found to have common PAN, mobile number or address. The same would be looked into in detail by the Income-Tax department. The government has got the deposits in Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts analysed in detail and amounts of cash deposited under different threshold in different regions of the country and shared it with the I-T department. "All cash deposits of more than one lakh rupees in cash under PMJDY accounts would also be looked into, based on the intelligence inputs," he said. It has come to the notice of the government that more than Rs 25,000 crore ($3.6 billion) have been deposited in cash in re-activated dormant bank accounts and the details have also been shared with the Income Tax department. Similarly, nearly Rs 80,000 crore ($11.7 billion) of repayment of loans in cash above a certain threshold post demonetisation has also been shared with law enforcement agencies. "The Income Tax department has undertaken numerous actions, both intrusive and non-intrusive, based on the intelligence and in turn referred a number of cases for parallel investigation by the ED and CBI. The actions have unearthed non-filers, huge amounts of unaccounted income and shell companies," the official said without giving details. The Income Tax department is also undertaking data analysis and comprehensive matching of the huge intelligence inputs with government databases to have a more effective and focused intrusive and non-intrusive actions in the coming days. "It is already taking actions in cases where cash deposits above Rs 50,000 ($732) have been made without quoting of PAN," he said. "The Income Tax department is using tools and its sources to identify each of these persons and is confident that there would a big expansion in the tax base and a quantum jump in direct tax collection," the official added. (PTI)

At least $44 billion of tax  evaded income deposited in banks after demonetisation: Govt

Cristiano Ronaldo and Jose Mourinho could have been involved in a multimillion-euro system of &quot;tax evasion and money laundering&quot;, according to leaked documents obtained by a number of media outlets.

A group of 12 European newspapers said it intends to disclose over the next three weeks the results of investigations into widespread alleged corruption at the heart of football under the banner &quot;Football Leaks&quot;.

Based on leaked documents obtained by German weekly Der Spiegel, the outlets claim that Real Madrid and Portuguese star Ronaldo could have &quot;hidden 150 million euros in tax havens in Switzerland and the British Virgin Islands&quot;.

Ronaldo, it is claimed, benefits from &quot;a system developed by his agent Jorge Mendes&quot;.&nbsp;

They cite two operations related to advertising revenue of the Portuguese star.&nbsp;

The first, between 2009 and 2014, could represent &quot;74.8 million euros via an offshore company called Tollin, registered in the British Virgin Islands&quot;, said the report released Friday.&nbsp;

&quot;He would have eventually declared a part of it,&quot; added the report sent to AFP by the Mediapart organisation.

&quot;The lawyers of the player told the (media) consortium that a Spanish tax audit aimed at Cristiano Ronaldo was still in progress,&quot; the newspapers said.&nbsp;

In the second operation, Ronaldo could have &quot;avoided 31 million euros of taxes&quot; according to these newspapers, making the most of &quot;12 days of an ultra-advantageous tax regime&quot; on his marketing rights for the period 2015-2020.

According to the European Investigative Collaborations (EIC) consortium, Manchester United manager Mourinho is said -- again via Mendes -- to have &quot;concealed 12 million euros in a Swiss account owned by a British Virgin Islands company.&quot;&nbsp;

It was &quot;subject to a tax audit in Spain... which resulted in a recovery of 4.4 million euros, penalties included&quot;.&nbsp;

Friday&#39;s first batch of leaks centred on &quot;a system&quot; put in place, according to the newspapers, by Mendes, the super-agent of Ronaldo and Mourinho.

The system overall would have accounted for a loss of &quot;at least 185 million euros of sponsorship income from the tax administrations through a network of offshore accounts and offshore companies in Ireland, the British Virgin Islands, Panama and Switzerland&quot;.

In response, Mendes&#39;s company Gestifute said Friday that Ronaldo and Mourinho had &quot;fully respected their obligations vis-a-vis the Spanish and British authorities&quot;.&nbsp;

The company accused the media consortium of operating in an &quot;insidious&quot; way concerning the stars&#39; tax obligations.&nbsp;

It said that neither Ronaldo nor Mourinho &quot;have been implicated in legal proceedings of the tax evasion commission in Spain&quot;.

(AFP)&nbsp; 
&nbsp;

German weekly claimed it had obtained documents that the Real Madrid star could have 'hidden 150 million euros in tax havens'

Cristiano Ronaldo and Jose Mourinho could have been involved in a multimillion-euro system of "tax evasion and money laundering", according to leaked documents obtained by a number of media outlets. A group of 12 European newspapers said it intends to disclose over the next three weeks the results of investigations into widespread alleged corruption at the heart of football under the banner "Football Leaks". Based on leaked documents obtained by German weekly Der Spiegel, the outlets claim that Real Madrid and Portuguese star Ronaldo could have "hidden 150 million euros in tax havens in Switzerland and the British Virgin Islands". Ronaldo, it is claimed, benefits from "a system developed by his agent Jorge Mendes". They cite two operations related to advertising revenue of the Portuguese star. The first, between 2009 and 2014, could represent "74.8 million euros via an offshore company called Tollin, registered in the British Virgin Islands", said the report released Friday. "He would have eventually declared a part of it," added the report sent to AFP by the Mediapart organisation. "The lawyers of the player told the (media) consortium that a Spanish tax audit aimed at Cristiano Ronaldo was still in progress," the newspapers said. In the second operation, Ronaldo could have "avoided 31 million euros of taxes" according to these newspapers, making the most of "12 days of an ultra-advantageous tax regime" on his marketing rights for the period 2015-2020. According to the European Investigative Collaborations (EIC) consortium, Manchester United manager Mourinho is said -- again via Mendes -- to have "concealed 12 million euros in a Swiss account owned by a British Virgin Islands company." It was "subject to a tax audit in Spain... which resulted in a recovery of 4.4 million euros, penalties included". Friday's first batch of leaks centred on "a system" put in place, according to the newspapers, by Mendes, the super-agent of Ronaldo and Mourinho. The system overall would have accounted for a loss of "at least 185 million euros of sponsorship income from the tax administrations through a network of offshore accounts and offshore companies in Ireland, the British Virgin Islands, Panama and Switzerland". In response, Mendes's company Gestifute said Friday that Ronaldo and Mourinho had "fully respected their obligations vis-a-vis the Spanish and British authorities". The company accused the media consortium of operating in an "insidious" way concerning the stars' tax obligations. It said that neither Ronaldo nor Mourinho "have been implicated in legal proceedings of the tax evasion commission in Spain". (AFP)

Football: Ronaldo, Mourinho in 'tax evasion, money laundering' claims

The world&#39;s major economies need to deepen cooperation on tax collection and information sharing as companies seek to minimise the amount they pay to governments, finance ministers at G20 said today.

The issue has become controversial in many countries, with multinational firms from Google to Starbucks facing accusations of not contributing appropriately to the economies where they make their money, and multi-billion-dollar merger proposals being partly driven by tax considerations.

&quot;When the current cross-border tax rules were developed they were tied to concepts that reflected geography and national boundaries,&quot; US treasury secretary Jacob Lew told G20 finance ministers meeting in the Chinese city of Chengdu.

&quot;When we look at technology a lot of that has become harder to define.&quot;

&quot;There needs to be a common standard across countries on important issues of transfer pricing,&quot; he said at a high-level symposium on tax policy, adding that countries had to deal &quot;collectively&quot; with issues that lead to non-taxation.

Closing loopholes, he added, would change the choices businesses make.

The G20 has previously supported proposals requiring authorities to share the identities of shell companies&#39; real owners, and backed creating a blacklist of international tax havens that do not cooperate with information-sharing programmes.

But the discussion as the G20 finance ministers and central bank chiefs meeting opened in Chengdu, in southwestern China, was wider, addressing base erosion and profit shifting, known as BEPS.

The term refers to companies using accounting techniques to shift their profits to low- or no-tax jurisdictions, reducing the amounts they are liable to pay.

Some countries, such as Ireland or Luxembourg, have drawn major firms to establish headquarters or subsidiaries by virtue of their tax rules -&nbsp;a key contributor to Dublin declaring earlier this month that its economy grew by a spectacular 26.3 per cent last year.

&quot;In the 21st century, talent, capital, and even physical infrastructures are increasingly mobile,&quot; said Angel Gurria, secretary-general of the Organisation for Economic Co-operation and Development (OECD).

&quot;So, a global conversation on these issues, on tax policy, is obvious, critical, important,&quot; he said, later naming Google, Apple and Starbucks as example companies.

But he acknowledged that it could be a sensitive subject: &quot;Tax policy has been and remains a sovereign issue.&quot;

The seminar jointly pushed for by Germany, China and the OECD &nbsp;also addressed issues of using tax policy to promote growth.

Earlier French finance minister Michel Sapin said that some countries, &quot;not only China&quot; were &quot;reluctant&quot; on questions of cooperation on tax evasion.

But Chinese finance minister Lou Jiwei said: &quot;We need to deepen the international tax cooperation, building on existing mechanisms.&quot; 
 
(AFP)

The multinational firms use accounting techniques to shift their profits to no-tax jurisdictions, reducing amounts they are liable to pay

The world's major economies need to deepen cooperation on tax collection and information sharing as companies seek to minimise the amount they pay to governments, finance ministers at G20 said today. The issue has become controversial in many countries, with multinational firms from Google to Starbucks facing accusations of not contributing appropriately to the economies where they make their money, and multi-billion-dollar merger proposals being partly driven by tax considerations. "When the current cross-border tax rules were developed they were tied to concepts that reflected geography and national boundaries," US treasury secretary Jacob Lew told G20 finance ministers meeting in the Chinese city of Chengdu. "When we look at technology a lot of that has become harder to define." "There needs to be a common standard across countries on important issues of transfer pricing," he said at a high-level symposium on tax policy, adding that countries had to deal "collectively" with issues that lead to non-taxation. Closing loopholes, he added, would change the choices businesses make. The G20 has previously supported proposals requiring authorities to share the identities of shell companies' real owners, and backed creating a blacklist of international tax havens that do not cooperate with information-sharing programmes. But the discussion as the G20 finance ministers and central bank chiefs meeting opened in Chengdu, in southwestern China, was wider, addressing base erosion and profit shifting, known as BEPS. The term refers to companies using accounting techniques to shift their profits to low- or no-tax jurisdictions, reducing the amounts they are liable to pay. Some countries, such as Ireland or Luxembourg, have drawn major firms to establish headquarters or subsidiaries by virtue of their tax rules - a key contributor to Dublin declaring earlier this month that its economy grew by a spectacular 26.3 per cent last year. "In the 21st century, talent, capital, and even physical infrastructures are increasingly mobile," said Angel Gurria, secretary-general of the Organisation for Economic Co-operation and Development (OECD). "So, a global conversation on these issues, on tax policy, is obvious, critical, important," he said, later naming Google, Apple and Starbucks as example companies. But he acknowledged that it could be a sensitive subject: "Tax policy has been and remains a sovereign issue." The seminar jointly pushed for by Germany, China and the OECD also addressed issues of using tax policy to promote growth. Earlier French finance minister Michel Sapin said that some countries, "not only China" were "reluctant" on questions of cooperation on tax evasion. But Chinese finance minister Lou Jiwei said: "We need to deepen the international tax cooperation, building on existing mechanisms." (AFP)

G20 ministers urge tighter tax rules for multinationals

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