CBDT To Plug Loopholes In Taxation Of Non-Resident High Net Worth Individuals | Working Group Of High Ranking Officials Set Up To Recommend Taxation Policy

The CBDT has issued an office order dated 3rd April 2018 in which it is noted that there is a trend of High Net Worth Individuals (HNWIs) migrating from their country of residence to other jurisdictions. It is stated that such HNWIs pose a substantial tax risk since they may treat themselves as non-residents for taxation purposes in the first jurisdiction even though they may have strong personal and economic ties with that jurisdiction. For examining the taxation aspects of such High Net Worth Individuals (HNWI), the CBDT has constituted a Working Group of high-ranking officials. The Working Group has to make recommendations for policy decision in respect of tax risks of the migrating HNWI population.

F.No.500/158/2017-FT& TR-III

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

(Foreign Tax & Tax Research-I Division)

New Delhi, dated the 3 April, 2018

OFFICE ORDER

Subject:-Working Group on Taxation Aspects of High Net Worth Individuals (HNWIs) -reg.

In recent times, there has been a trend of High Net Worth Individuals (HNWIs) migrating from their country of residence to other jurisdictions. Such HNWIs pose a substantial tax risk since they may treat themselves as non-residents for taxation purposes in the first jurisdiction even though they may have strong personal and economic ties with that jurisdiction. For examining the taxation aspects of such High Net Worth Individuals (HNWI), a Working Group has been constituted, with the approval of Chairman, CBDT, 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.

The first meeting of the Working Group shall be held at 10:30 AM on 06.04.2018 at the Conference Hall, 8th Floor, Hudco Vishala Building, Bhikaji Cama Place, New Delhi. The members of the Working Group may kindly make it convenient to attend the meeting.

(Pooja Hali)

Under Secretary (FT &TR-III (2))

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