Mumbai/New Delhi: The Income Tax department
has requested the Finance Ministry to approach the authorities
in Switzerland and other tax havens for details of overseas
accounts of "non-residents" who invested in the Indian Premier
The step is part of the ongoing investigations into
investment of foreign funds in the IPL.
The investigating unit in Mumbai has written to the
Foreign Tax Division in the Central Board of Direct Taxes
(CBDT) to obtain information about "foreign entities in IPL
teams" after its probe into the cash-rich tournament found
investments by "non-residents", especially in teams like Kings
XI Punjab, Rajasthan Royals and Royal Challengers Bangalore.
The Ministry has also written to the Reserve Bank of
India (RBI) seeking information on the foreign investments
brought by all the IPL franchises and has asked the
Enforcement Directorate to check violations under the Foreign
Exchange Management Act (FEMA).
"The bid documents reveal huge funding by NRIs in various
IPL franchises. But the documents do not reflect the entire
financial details of these individuals," a top I-T officer
In order to establish the amount of tax evasion, if any,
the department has approached the concerned CBDT wing to
execute Direct Taxation Avoidance Agreements (DTAA) with
countries such as Switzerland, Germany and Mauritius to
facilitate exchange information, the officer added.
The Foreign Tax Division in the Finance Ministry looks
into the tax liabilities and evasion by non-residents and
foreigners in respect of both the countries under the
The overseas remittances of certain IPL franchises are
also under probe, I-T sources said.
The Income Tax department had collected documents related
to bidding, payment of taxes and various other financial
details during its countrywide survey of various IPL
franchises, with the first such operation being conducted on
April 15 at the BCCI and IPL premises, including the office of
suspended IPL Commissioner Lalit Modi.
The I-T department in Mumbai has created a special
cell of officers to monitor the IPL as the metropolis hosts
the IPL marketing and advertising offices.
Almost eight investigation wings of the department in
various cities like Chandigarh, Kochi, Jaipur and New Delhi
are also probing the taxation aspects of the IPL transactions.