CAs under ambit of black money bill

Print Posted Date : 21-Mar-2015 , 08:47:10 am | Posted By CASANSAAR

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The government's black money bill seeks to bring the financial intermediary community, including CAs 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."

Venkatesh said the Income Tax Act also has provisions that bring consultants and auditors into its net, but the inclusion of the word "abet" makes it more stringent.

A government official said the provisions would be applicable to financial institutions and advisers but added that the revenue department will ensure there is no harassment.

Venkatesh said regardless of the severity of the provisions, it is the implementation which remains the key since such checks have existed in other laws like the Income Tax Act or even the Prevention of Money Laundering Act. Another CA from Delhi, who did not want to be named, said, "There must be checks and balances in place to ensure that this power is not abused (by government officials)." (Times of India)

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