Tax Crimes under the Money Laundering Law

The government is considering placing tax crimes at the sama level as money laundering offences that have severe criminal and financial implications. Income-tax offences could come under its anti-money laundering law, which would make prosecution, rigorous imprisonment, fines and shifting onus on the accused to prove he is not guilty a lot more easier. The offences will include concealment of income, failure to deposit tax deducted at source and false evidence.

Recommendations could be placed before Parliament and changes could be made to the Prevention of Money Laundering (Amendment) Bill, 2011.

These changes are in accordance with a global plan drawn up by the Finance Action Task force, an inter-governmental body to combat money laundering and terror financing, of which India is a member.Many countries have incorporated these offences in their money laundering laws even though the FATF adopted them as part of new standards in February this year.

If the changes take place, the trial in these cases will be faster as offences under PMLA are tried in special courts and the onus to prove innocence lies on the accused.