http://www.taxguru.in/income-tax/income-tax-it-raid-at-hdil-admitted-tax-evasion-of-more-than-300-crore.html

This story will die. The company will pay a fine from its corporate balance sheet. The directors who are responsible for skimming off the money not only from the tax man but also from the shareholders will get away scot free.
The Indian government’s reluctance to punish white collar crime is well known, given that the vested interests are high.
This is precisely the reason that when anyone invests in an Indian company, the call to take is only on relative honesty and not in the aboslute sense. I even doubt if the next annual report of this company will comment on this.
This is precisely one of the events on which the stock exchanges and SEBI should insist on a disclosure from the company promoter/manager and seek explanation about what is the loss to the shareholders. Further, if any penalty is to be paid, it should not come from the company. The promoter should make good the loss of money to the shareholders also.

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One thought on “Tax evasion- the shareholder vs promoter

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