Corporate outflows to Dubai suggest no evasion of tax

New Delhi, Aug 21 (UNI) The outflow by the Indian corporates to the United Arab Emirates during 2006-07 was 141.915 million dollars but there was no information to suggest that the outflow was either unaccounted cash or intended to evade tax, Rajya Sabha was told today.

Answering Mr R K Dhoot, Minister of State for Finance S S Palanimanickam said that during the inquiries carried out by Income Tax in the recent past no such instance had come to establish that many high net worth resident Indians had floated companies in Dubai's free trade zone to evade tax and slush away unaccounted cash.

To a questions of Ramdas Agarwal and Shahid Siddiqui and others seeking to know if the ISI conduits from Pakistan had confessed that the counterfeit currency worth over Rs one crore had been pumped into the Indian economy through agents in Nepal, Bangladesh, Sri Lanka and Thailand, the minister said the information was being collected for laying on the table of the House.

UNI