The Central Board of Direct Taxes (CBDT) has constituted 5-member working group (committee) to examine taxation aspects related to High Net Worth Individuals (HNWIs) who are migrating abroad to other jurisdictions.
The Working Group will be headed by Pragya Sahay Saksena, a joint secretary with Foreign Tax & Tax Research Division of CBDT.
Objectives of Central Board of Direct Taxes (CBDT)
- In order to examine the taxation aspects related to High Net Worth Individuals (HNIs) who are migrating abroad to other jurisdictions, The Central Board of Direct Taxes (CBDT) has constituted a five-member working group.
- It shall make recommendations for policy decision in respect of tax risks of the migrating HNWIs.
- The Group has also been empowered to coordinate with various divisions /directorates of Board to formulate India’s position for various aspects related to taxation of migrating HNWIs.
- The announcement of the Working Group, which has been formed with the approval of CBDT Chairman Sushil Chandra, comes at a time when there are concerns over the recent cases of HNWIs such as Nirav Modi and Vijay Mallya fleeing from the country amid ongoing investigations against them.
- 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 HNWs, a Working Group has been constituted.
Background of C.B.D.T
The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963.
The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes.
It came into existence as a result of the Central Board of Revenue Act, 1924.