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In Chapter III of Second SIT report, the SIT has recommended as under: 
“Financial Action Task Force (FATF) on money laundering recommends ‘tax crimes’ to be made a predicate offence so that action can be taken under Prevention of Money Laundering Act, 2002. There are more than 25 countries in the world which have made ‘tax crimes’ as a predicate offence. The Government needs to seriously examine the issue and take steps to make ‘tax crimes’ as a predicate offence. To prevent any hardship to salaried or small tax payer, a high threshold of say, more than Rs. 50 lakh of tax evasion could be considered as being a predicate offence”. 
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This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Rajya Sabha.
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Comments
10 years ago K.S.NAVEEN KUMAR

Tax Evasion already attracts prosecution under the relevant tax law. That apart there are provisions for demand of tax with interest and imposition of stiff penalties. It needs to be seen as to what would be treated as an offence under the money laundering law.


10 years ago dr g balakrishnan

JUST BECAUSE PARLIAMENT WHICH IS VALID JUST FOR FIVE YEARS ONCE ELECTED THAT CANNOT JUST MAKE A FANCIFUL IDEAS AS 'GREAT ACTS' THAT EVERY COURT RECOGNISES THAT WAY DOCTRINE OF SEVERABILITY OR DOCTRINE OF NATURAL JUSTICE AND THE LIKE SIRS.


10 years ago dr g balakrishnan

WHY DO WE SAY LAW? A MEANINGFUL PROCEDURE ONLY AS ACCEPTABLE BY THE NATION.


10 years ago dr g balakrishnan

LAW MAKERS CALLED LEGISLATORS HAVE TO FOLLOW THE ART 265 TERMS OF PROCEDURE ESTABLISHED BY 'LAW' IE NOT WHAT PARLIAMENT PASSED BUT WHAT CONSTITUTION SAYS AS DECIDED BY A COMPETENT CUSTODIAN COURT...LIKE CONSTITUTIONAL COURTS, NOT CONSTITUTED COURTS BY ANY STATUTES ALONE SIR. ELSE LAW MAKERS MIGHT MAKE EVERY ONE A CRIMINAL JUST AT THE DROP OF THE HCT.. THAT WAY SPENSER SAID THEN LAW IS BASED ON CUSTOMS AND HABITS...NOT OUT OF FANCIES OF SOME LEGISLATORS....


10 years ago dr g balakrishnan

LAW MAKERS CALLED LEGISLATORS HAVE TO FOLLOW THE ART 265 TERMS OF PROCEDURE ESTABLISHED BY 'LAW' IE NOT WHAT PARLIAMENT PASSED BUT WHAT CONSTITUTION SAYS AS DECIDED BY A COMPETENT CUSTODIAN COURT...LIKE CONSTITUTIONAL COURTS, NOT CONSTITUTED COURTS BY ANY STATUTES ALONE SIR. ELSE LAW MAKERS MIGHT MAKE EVERY ONE A CRIMINAL JUST AT THE DROP OF THE ACT.. THAT WAY SPENSER SAID THEN LAW IS BASED ON CUSTOMS AND HABITS...NOT OUT OF FANCIES OF SOME LEGISLATORS....


10 years ago dr g balakrishnan

TAX EVASION CANNOT BE TREATED AS A CRIME, AS TAX IS A PAYMENT MADE OUT OF YR EARNINGS ONLY NOT FROM SOME ONE ELSE'S MONEY OR HIS LEGITIMATE EARNINGS..JUST BECAUSE YOU MAKE A LAW AS MONEY LAUNDERING IS A CRIME COULD NEVER QUALIFY AS A CRIME UNLESS ACCUSED IS GIVEN OPPORTUNITY UNDER NATURAL JUSTICE AND HEARD AND DECIDED BY A COMPETENT COURT OF LAW NOT SOME QUASI JUDICIAL BODY/IES.


10 years ago rajagopal.s

A very good move. However special courts should be set up to try "Tax Crimes" and this will ensure speedy justice and also will make tax compliance as a way of life.


10 years ago dr g balakrishnan

all accused of crime is subject to judicial review as the judicial review alone knows whether statute or delegated legislation is qualifying on testing on the anvils of indian constitution which constitution has solid foundations, for it does n work on moneys and moneys worth only but only on rationalistic approaches accepted by time tested equally factors too, that way democratic fundamentals are built...so if revenue loses revenue is not the problem of judiciary but it is the problem of the law maker only. he needs to be a man of solid wisdom else he faces problems from all corners...tax shd by all means is the easily payable component from one's income and he shall not have an incentive to avoid means by way way threats given like what SIT has given now. one needs to be motivated by volition only. that is called taxation principle.


10 years ago slakshmanrao

Taxation laws or Income Tax Act,both have Central Government Sanction.S.I.T. can confine only to the duty assigned.


10 years ago dr g balakrishnan

SIT recommendation is just administrative but its views re subject to judicial review which is powerful, you cannot make any one especially tax payer as a so called criminal, so taxation is supposed to work under art 265 means meaningful principle of what is a due process of law principle really in depth means....


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