Aishwarya/Amitabh named in Panama Papers: Global corruption scandal - Page 11

Originally posted by: Faberica

In 2004 RBI allowed to remit funds overseas,(initially it was $25000 pa and now the limit is $250,000 pa) which was not allowed before, for education, medical treatment, etc. It let individuals to buy shares under LRS but never allowed to set up a company. Only in August 2013, individuals were allowed to setup subsidiaries or invest in joint ventures under Overseas Direct Investment.

Last year ICIJ started a project named The Panama Paper joined by 375 journalists over 76 countries. In India it was 'The Indian Express' who joined them in their investigation.

Originally posted by: bigul

thats not true actually. before 2004 rbi act indians were allowed to invest money abroad but only when the income was from abroad, individuals were not allowed to invest their money(earned from india) abroad. and coming to the 2004 guidelines where rbi declared the sectors where individuals were allowed to invest money overseas...actually there was a loophole from RBI's side. they never declared the purpose where it can't be used. only in 2010 rbi cleared about 2004 guidelines. so that creates all of the confusions. thats the reason there was mushrooming of offshore entities .

however acc to RBI notification,anyone investing before 2004 is in violation of the act and now its clear that only if the authorities were not informed of the assets held abroad then there are various acts that are triggered, otherwise its a weak case. so lets see if anyone from the list haven't disclosed their assets to gov and is ready to be called a tax evader.😆

Originally posted by: Faberica

That's what I said, I just didn't mentioned anything about global income(to make it less complicated). Yes there was loophole, that's the reason so many Indians made such investments. In 2007-08 RBI announced in a meeting that no such thing is allowed, setting up a company. But still there was confusion.On 17th Sept 2010, RBI issued written FAQ where it said that resident individual cannot setup company abroad. But then too they found loophole in it, they interpreted that even though you cannot setup a company abroad, you can takeover. 😆

In 2015-16 RBI issued a notification under FEMA that individuals who have incorporated company overseas prior to August 2013 would violate the rules on LRS.

Originally posted by: gatheringstorm

I am so happy about this leak, hopefully this will scupper all of ABSr's presidential ambitions, if they were true