The government is preparing an action plan to recover revenues from high networth defaulters like Nirav Modi and Vijay Mallya who escaped the law and slipped out of the country leaving the tax authorities in an embarrassing and helpless spot.
The Central Board of Direct Taxes (CBDT) has formed a committee to study these cases and prepare an action plan for due revenue to be extracted from them and ensure that the tax authorities are not left in the lurch.
The five-member 'working group', would be led by a joint secretary-rank officer of the finance ministry and look into "taxation aspects" of such high networth individuals (HNIs).
A CBDT order said that working group will formulate India's position for various aspects related to taxation of migrating HNIs" and has been created on the directions of CBDT Chairman Sushil Chandra.
The board order noted that in recent times there has been a trend of HNIs migrating from their country of residence to other jurisdictions.
Such ultra rich people, it said, pose a "substantial tax risk since they may treat themselves as non-residents for taxation purposes in the first jurisdiction even through they may have strong personal and economic ties with that jurisdiction"....