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27
February 2017
Tax
authorities in India and other countries are probing HSBC Bank, including its
Swiss and Dubai offices, for allegedly abetting tax evasion by four Indians and
their families, the multinational lender has disclosed. The Total Investment & Insurance Solutions
"Various
tax administrations, regulatory and law enforcement authorities around the
world, including in the US, France, Belgium, Argentina and India, are
conducting investigations and reviews of HSBC Swiss Private Bank and other HSBC
companies in connection with allegations of tax evasion or tax fraud, money
laundering and unlawful cross-border banking solicitation," HSBC said in
its latest annual report released earlier this week.
In
August 2015 and November 2015, HSBC companies received notices issued by two
offices of the Indian tax authority alleging that it had sufficient evidence to
initiate prosecution against HSBC Swiss Private Bank and an HSBC company in
Dubai for allegedly abetting tax evasion of four different Indian individuals
and/or families and requesting that the HSBC companies show why such
prosecution should not be initiated, it said, adding both have responded to the
show-cause notices. The Total
Investment & Insurance Solutions
The
bank also said it has set aside $773 million as provision to deal with various
tax and money laundering-related issues. The Total Investment & Insurance Solutions
"There
are many factors that may affect the range of outcomes, and the resulting
financial impact of these investigations and reviews. Due to uncertainties and
limitations of these estimates, the ultimate penalties could differ
significantly from the amount provided," HSBC said.
India's
Income Tax department has earlier said it has filed well over 100 cases of
prosecution against those entities whose names appeared in the HSBC Geneva bank
list.
The
move came after the Indian Supreme Court in 2014 gave a list of 628 entities in
the bank branch, that was furnished to it in a sealed envelope by the central
government, to the Special Investigation Team (SIT) constituted in May
2014.
HSBC
also reported that it has been approached by the regulatory and law enforcement
agencies of various countries for information on persons and entities,
including hundreds of Indians, named in the leaked Panama Papers about alleged
tax violations committed through offshore tax havens.The Total Investment & Insurance Solutions
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