Black money bill targets abettors

In a bid to get back ill-gotten money stashed by Indians abroad, curb the menace and deter future such practices, the proposed new law not only seeks stringent action against perpetrators but also abettors like banks, chartered accountants, directors and employees. "In keeping with the commitment of the government for focussed action on the black money front, an unprecedented, multi-pronged attack has been launched to root out the menace of black money," the Finance Ministry said, seeking to explain the nuances of the proposed new legislation.

"Abetment or inducement of another person to make a false return or a false account or statement or declaration under the act will be punishable with rigorous imprisonment from six months up to seven years," it said. "This provision will also apply to banks and financial institutions aiding in the concealment of foreign income or assets of resident Indians or falsification of documents," it said as the bill makes it clear that proceedings can be initiated both against individuals and against enitities.

The bill says when an offence is by a company, every individual in charge of its business at that time will be held guilty. The deemed deafaulters can also include a managing director, director, manager, secretary or official if they have shown consent, connivance or neglect. The bill also lists how the monies payable under the act should be recovered.

"Every person being a manager at any time during the financial year will be jointly and severally liable for payment of any amount due under in respect of the company for the financial year, if the amount cannot be recovered from the company," says a note. Likewise, a debtor of the perpetrator can be asked to pay an amount not exceeding the amount of debt to meet the tax liability. Failure will make the debtor a defaulter. For this, A debtor is not a person who owes the perpetrator but also if money is held on account of the perpetrator.