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The Wire
2 days ago
- Business
- The Wire
Why Business Leaders and Entrepreneurs Must Wake Up to Tax Department and Interpol's Collaboration
The Income Tax department's recent move to collaborate with Interpol in tracking down Indian tax evaders hiding assets abroad is more than just a headline. It's a shot across the bow – not just for habitual offenders, but for the entire business ecosystem. Seeing from both a legal standpoint and an entrepreneurial mind, this moment calls for sharp legal awareness and sharper business integrity. What happened and why it matters India's I-T department is now actively using Letters Rogatory (judicial requests to foreign jurisdictions) and coordinating with Interpol to unearth undisclosed overseas assets. In plain terms: the age of 'out of sight, out of reach' is over. This isn't just about tracking down fugitives. It's about signaling to the business community – especially those with global footprints – that scrutiny doesn't end at our borders. Offshore trusts, layered shell companies and nominee shareholders are no longer safe bets. The message is clear: if your money crossed the borders without a tax trail, the law might just follow. From a businessperson's lens Reassess your offshore structures: Many global entrepreneurs and legacy businesses have genuine international operations these days. However, if you're holding onto outdated offshore models that were set up to 'optimise' taxes without substance, now is the time to rethink. What once passed as creative structuring may now attract regulatory suspicion. Embrace compliance as a strategic asset: Today, compliance isn't just a legal checkbox – it's a reputation safeguard. Clients, investors and regulators now demand visibility. The companies that survive and scale in this new era will be the ones that view transparency as part of their brand, not just their books. Get ahead of the curve with voluntary disclosures: If there are skeletons in the closet – undeclared assets, foreign income, or structures that haven't been updated in years — the worst move is silence. The better move is proactive engagement with your advisors. In some cases, voluntary disclosures can reduce penalties or avoid prosecution. Digital footprints matter: The authorities are using more sophisticated data-matching tools than ever. Cross-border banking info, crypto transactions, property registries – everything leaves a trail. If your tax strategy relies on opacity, it's time to pivot. Build a legal-first mindset into your business DNA: Whether you're a startup scaling globally or a legacy company managing international assets, your legal strategy needs to be as agile as your business plan. Surround yourself with advisors who understand international tax, compliance frameworks and enforcement trends. Governance vs nuisance While these measures are towards governance which seeks to create stability and transparency and helps to crack down the tax evasion case, it is important to note that these regulations could also lead to a nuisance which could create disorder or harm the genuine cases. While the government has been given wide power to crack down the undisclosed foreign offshore assets, what is important is that it ensures that these powers are used to crack the tax evaders rather than genuine cases where there is a lapse due to oversight or noncompliance due to ignorance or where there is no wilful default. A legal-entrepreneurial future This shift isn't a threat – it's a wake-up call. And for the discerning entrepreneur, it's an opportunity. An opportunity to build more resilient, transparent, future-proof enterprises. An opportunity to clean up the grey zones and invest in governance that travels well across borders. As someone who straddles the worlds of law and business, I see this as a defining moment. The global legal landscape is evolving. The businesses that survive it will be those who evolve with it — not just legally, but culturally. Let this be a moment of reflection, not fear. The law is finally catching up with the global economy. Namisha Gupta is a Delhi based lawyer.
Time of India
13-06-2025
- Time of India
How Cartel Adulterated Colombian Cocaine, Operated Smuggling Ring
New Delhi: A sophisticated cartel adulterated pure Colombian cocaine with synthetic substances to create a product that could be sold to Indian consumers at a significant profit. Tired of too many ads? go ad free now A web of pharmaceutical and shell firms was used to orchestrate the smuggling and distribution of this cocaine across the country. The cartel members were shared Google coordinates for the collection of consignments, which were then stockpiled for sale at music concerts and rave parties in Delhi, Punjab, Mumbai, Hyderabad and Goa. Encrypted communication channels and a chain of middlemen ensured smooth operations. The imported cocaine was adulterated because there weren't many buyers who would pay the exorbitant price of pure cocaine. The revelations are part of the chargesheet filed by Delhi Police's special cell in connection with the massive narcotics haul worth over Rs 15,000 crore, seized last Oct. The chargesheet is against 14 arrested men, besides five other suspects who are absconding. The probe revealed that the cartel was being run from Pakistan and Dubai, with members spread across Thailand, Malaysia and the United Kingdom. The special cell has written Letters Rogatory (LRs) to these countries seeking assistance in the investigation. Any evidence received from these countries in the future will be presented in court through a supplementary chargesheet. The cartel members used foreign mobile numbers and WhatsApp accounts activated on international numbers and were directing other members of their gang through social media accounts. Tired of too many ads? go ad free now The investigation revealed that the syndicate masterminds, Sandeep Dhunay Sunny and Virender Singh Baisoya alias Veeru, registered three firms — Pharma Solution Services, RM Biochem, and Life Saver Pharma — in the names of poor people to camouflage themselves. The firms were used to hide the transactions of money for the production of contraband substances, purchasing raw materials required for production, and distributing the seized prohibited contraband. GST registrations, current bank accounts, and PAN cards of these three firms were created and used by the accused for transactions of drug money. The firms were also fronts for procuring raw chemicals which were used in adulterating the pure cocaine. The racket was busted after cops started working on a tip received from a central intelligence agency in Aug 2024. A total of 1,289 kg of cocaine and 40 kg of hydroponic marijuana from Thailand was ultimately recovered in the case. On Oct 1 last year, the special cell first raided the warehouse of a person identified as former Congress politician Tushar Goyal in Mahipalpur and seized a consignment of 562 kg of cocaine and 40 kg of hydroponic marijuana. After further investigation, an additional 208 kg of cocaine was recovered from a shop in Ramesh Nagar on Oct 10. After that, Colombian cocaine worth around Rs 6,000 crore was seized following a raid at a pharmaceutical company, Abkar Drugs Limited, in Ankleshwar, Gujarat, two weeks later. The drugs were hidden as chemicals, packed in cardboard boxes containing shirts and namkeen mixtures. The chargesheet was filed after cops received the forensic reports recently.
