Sportzpower Team
New Delhi: Realising that round tripping could be involved - thepractice of bringing money back into the country using off shore taxhavens - the Income Tax authorities have decided to rope in theFinancial Intelligence Unit (FIU) to pinpoint and trace specific highvalue cross-border monetary deals during 2008-09 and 2009-10. OnMonday, IT authorities briefed the FM on its preliminary findings.
Created by the finance ministry in 2004, FIU is used to monitordubious money laundering transactions. It has prepared a list ofthousands of cases of doubtful inward remittances. In 2008-09 alonethere were 4409 such transactions. Tax authorities believe that somesuch trasactions could well have found their way into the IPL.
The ambit of investigation is over arching and sources close todevelopments told sportzpower that the paper trail leads to Mauritiusand Virgin Islands. Since IPL itself is not a registered entity andfunctions as a subsidiary of the BCCI, it is the cricket board whichwill have to bear the tax liability. In any case its tax exemptionstatus due to its erstwhile avatar of a non profit organisation hasceased to exist because of the IPL which is a commercially drivenentity making money for both the BCCI and individual franchises.
* BCCI's total income from IPL 3.0 is expected to be Rs 1170 crorewith a net profit of about Rs 573 crore. The total expenses of IPL’sogranisers are pegged at Rs 653 crore this year. Their income taxliability as such is anticipatecd to be Rs 172.5 crore.
*Benaami ownership has been traced in some of the franchises. Roundtripping instances in at least three franchises.
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