A lsquo Task Force on Shell Companies rsquo under the Joint Chairmanship of Revenue Secretary and Se...........

Economic Affairs Others

A ‘Task Force on Shell Companies’ under the Joint Chairmanship of Revenue Secretary and Secretary, Ministry of Corporate Affairs was constituted in February, 2017. What are ‘Shell Companies’?

Oil companies that cause heavy ecological damage

Fly by night operators

A corporate entity without active business operations

A company engaged in deep sea precious stones extraction

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Explanation:

Shell Company is a corporate entity without active business operations or significant assets. It can’t be asserted that shell corporations are illegal. They are deliberate financial arrangements by many big companies to avoid taxes without attracting legal actions. Tax avoidance is not illegal, though it is not desirable. But many shell companies park black money, carryout illegal transactions and sometimes act as facilitators of money laundering.

Often, shell companies remain untraceable and happen to be the vehicle of choice for money launderers, bribe givers and takers, tax evaders and financiers of terrorism.
Most of the shell companies are registered in tax havens like British Virgin Islands or Cayman Islands.
Recently it was found that a single address hosted 75 firms and no employees! The taskforce will look into such issues.