HSBC’s Swiss, Dubai arms under scanner for tax evasion by Indians

The UK-based HSBC, which also disclosed on Monday ongoing probes by tax authorities from various countries in connection with alleged abetment of tax evasion and money laundering through its Geneva branch, said it is cooperating with the relevant authorities and cautioned of “significant” financial impact as a result of these investigations.

HSBC has been under scanner ever since a leaked list of hundreds of Indian clients of its Geneva branch found its way to the Indian tax authorities. Similar lists made their way to tax authorities in various other countries, prompting probes.

Indian government has stepped up its fight against black money, allegedly stashed in Switzerland, in recent years and there have been apprehensions that the so-called illicit wealth might have got shifted to other places such as Dubai.

Without disclosing the names of the Indians who indulged in the alleged tax evasion through its Swiss or Dubai units, HSBC said while announcing its annual results that it had first issued summons in February 2015 from Indian tax authorities, while fresh notices were issued in August and then in November.