Black Money: HSBC India At Centre Of Fresh Tax Evasion Claims

LONDON: HSBC’s Indian banking unit is at the heart of fresh revelations around tax evasion, days after a global expose showed tax dodging through accounts in the British major’s Swiss banking unit, a media reported.

It is alleged that representatives of HSBC India, which has employees based in America, assured customers that details of their accounts would not be reported to tax officials.

The latest revelations came even as the bank issued full- page advertisements in British newspapers as a public apology after reports that its Swiss banking arm had helped some wealthy clients avoid tax.

According to court documents seen by The Sunday Times, employees in one case allegedly advised a New Jersey Indian- origin businessman to transfer funds in tranches of under 6,500 pounds to “stay below the radar”.

Court documents reveal that HSBC India has been accused of helping American citizens of Indian-origin to avoid tax, the report said.

The American justice department issued a summons against the bank in April, 2011 to reveal details of clients.

It was claimed that the bank promoted its services on the basis of keeping information secret from the tax authorities.

“Prospective clients were told that, as a foreign bank, HSBC India would not disclose the accounts to the IRS,” the government said in court filings.

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