Strictly enforce law to raise legitimate revenues: FM to ED
Finance Minister Arun Jaitley on Saturday vowed to make an example of money launderers and tax evaders, saying penalising powers of economic crime-fighting agency ED should be used "expeditiously" in cases of non-compliance. Speaking on the Enforcement Day here, he called on the agency to "strictly" enforce laws to help the exchequer raise legitimate revenue. He felt that non-compliance of tax laws has always hit the larger public and national interest.
"And that is why the revenue department and the ED have a very important role to play," he emphasised. "There is an expectation of compliance and in the event of non-compliance, there is the power of penalising that the ED has. This power has to be expeditiously used whenever violations are detected." Jaitley hoped the ED will "strictly enforce the law in our endeavour to raise legitimate revenue which is in larger public interest which can only be achieved by ensuring voluntary compliances of people".
Stating that the government has given citizens the right to deal in foreign exchange with a sense of trust, he said serious offence of money laundering, including using hawala channels, flight of capital out of the country, round tripping of funds and creation of shell companies to avoid taxes have become a "very standardised practice".
Jaitley said that these violations are not difficult to detect and scrutiny of filing with registrar of companies can also lead to the detection. "The entire route of multi-layering through which the money laundering takes place... it is matter of a few minutes to detect how the violation takes place," he cautioned.
The finance minister termed money laundering, round tripping, tax evasion and creation of shell companies as a serious offence as the money meant for eduction, healthcare, rural development is being taken away. "Our target has to be to make sure India as it evolves from a developing to developed economy (also changes) from a tax non-compliant society to a highly-compliant society. Once that were to happen, I think the fear of the law and the fear of the consequences visiting us itself will ensure compliance takes place," he said.