HSBC Discloses Tax Evasion Probes in India, Other Countries
London | New Delhi: Global banking giant HSBC has disclosed being probed by tax authorities in India and several other countries, including against its Swiss and Dubai units, for allegedly abetting tax evasion of four Indians and their families.
Besides, the bank has been approached by the regulatory and law enforcement agencies of various countries for information on persons and entities named in the leaked ‘ Panama Papers’ — which included hundreds of Indians who had indulged in alleged tax violations through offshore tax havens with the help of Panamanian law firm Mossack Fonseca.
Disclosing the “taxrelated investigations” in its latest annual report published last week, HSBC further said it has set aside $773 million (over .₹ 5,000 crore) as a provision for various tax and money laundering-related matters.
“There are many factors that may affect the range of outcomes, and the resulting financial impact of these investigations and reviews. Due to uncertainties and limitations of these estimates, the ultimate penalties could differ significantly from the amount provided,” HSBC said.
“Various tax administrations, regulatory and law enforcement authorities around the world, including in the US, France, Belgium, Argentina and India, are conducting investigations of HSBC Swiss Private Bank and other HSBC companies in connection with allegations of tax evasion or tax fraud,” it said.