By TIOL News Service

NEW DELHI, APRIL 05, 2018: EVER since the news about hordes of dollar-millionaires leaving India for safe havens was reported, the CBDT has been a worrying Revenue Board. It was only because of the Q4 pressure it could not think much about the issues arising out of such unusual migration. As per one recent report, as many as 7000 high networth individuals have left India last year. And their favourite destinations were Dubai, Singapore, London and New York. In total, more than 23000 HNIs left India since 2014.

Having perceived serious tax risk the CBDT today notified the constitution of a Working Group to study the types of risks such migration poses. The CBDT Office Order notes that such migrating HNIs treat themselves as non-residents for taxation purposes in the first jurisdiction even though they may have strong personal and economic ties with the adopted jurisdiction. For examining the taxation aspects of such High Net Worth Individuals (HNWI), a Working Group has been constituted, comprising of the following officers:

i) Ms Pragya Sahay Saksena, JS(FT&TR)-I

ii) Mr Amitav, ADG-I (Risk Assessment)

iii) Mr Zakir Thomas, CIT(OSD)(Inv.), CBDT

iv) Mr. Rajesh Bhoot, JS(TPL)-II, CBDT

v) Mr Navneet Manohar, Director(FT&TR)-III, CBDT

The Working Group shall be responsible to coordinate with various Divisions/Directorates of Board as well as field formation to formulate India's position for various aspects related to taxation of migrating HNWIs. The Working Group shall also make recommendations for policy decision in respect of tax risks of the migrating HNWI population.