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HSBC under probe for abetting tax evasion

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image: www.hsbc.com

Indian tax department had issued a warning notice to global banking massive HSBC to prosecute its Swiss and Dubai offices for allegedly abetting tax avoidance by four Indians and their families.

The tax authorities continuing the investigation on UK-based HSBC which was disclosed on Monday, regarding alleged abetment of tax evasion through its Geneva branch. HSBC said that it is cooperating with the authorities and hoped a ‘’significant’’ financial impact as a result of these investigations.

According to tax authorities, they have sufficient evidence against HSBC involvement in illegal activities. HSBC  had been scanned under Reserve Bank of India also which revealed the dissonance in the banking operations, including allowing a decoy customer to open a  suspicious account in September 2014.

HSBC was examined by Indian tax authorities after the leaked list of hundreds of Indian clients of its Geneva branch from French and German.

This will help Indian government to fight against black money which is allegedly stashed in Switzerland, there have been apprehensions that the illegal money has been shifted to some other place like Dubai in recent years. Similar lists made in other countries also, prompting probe.

HSBC said that it had first issued its summons in February 2015 from tax authorities while fresh notices were issued in August and then in November during the announcement of annual results, without disclosing the names of Indians who were involved in the tax evasion through its Swiss and Dubai units.

The bank on Monday reported a revenue of $1.84 billion in 2015, up from $1.74 in 2014 from Indian operations. However, it has a profit of $606 from India operations, including from global banking and market business. For India, its customer account had the balance of $11.8 billion at the end of 2015, up from $11.7 billion in 2014.

Meanwhile, the RBI report alleges that HSBC could have possibly optimized the violation of Foreign Exchange Management Act (FEMA) by allowing customers to bank with offshore private banking locations.

A sample check of HSBC’s outward remittances has found that bank has breached the limits under the Liberalised Remittance Scheme, which allow Indians to open accounts abroad, reported RBI. It also reported on alleged deficiencies in KYC procedures.

The UK-based bank has been under the scanner of financial sector regulators in many countries. In December 2012, the US authorities had slapped a fine of $1.9 billion on the lender for breaking US anti-money laundering rules. (Inputs from agencies)

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Mean Fixed Broadband Download Speed in India Rises to 16.5%

Availability of 4G continues to improve in India as the country's mobile providers are trying to provide consistent coverage across the country

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India is the leader in mean fixed Broadband download speed amongst other neighbouring countries, with Bangladesh at 24.02 Mbps and Pakistan with flat speeds between 8.54 and 9.14 Mbps. Pixabay

Mean fixed broadband download speeds in India have risen by 16.5 per cent during the second quarter (Q2) and third quarter (Q3) of 2019 and topped 34.07 Mbps in September while country-wide Internet speeds were expected to increase, US-based broadband speed tester Ookla said on Wednesday.

“With Reliance Jio’s rollout of its new GigaFiber service in India in early September, we will likely continue to see countrywide speeds increase,” the company said in a statement.

According to the Ookla’s report, which examined the recent trends in Indian telecom market during the last two quarters, India is the leader in mean fixed broadband download speed amongst other neighbouring countries, with Bangladesh at 24.02 Mbps and Pakistan with flat speeds between 8.54 and 9.14 Mbps.

Availability of 4G continues to improve in India as the country’s mobile providers are trying to provide consistent coverage across the country.

This availability is the percentage of an operator’s known locations where a device has access to LTE service (including roaming).

India’s 4G Availability was relatively high at 87.9 per cent across providers during Q2-Q3 2019, which means that Speedtest users had access to LTE service at 87.9 per cent of surveyed locations.

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Mean fixed Broadband download speeds in India have risen by 16.5 per cent during the second quarter (Q2) and third quarter (Q3) of 2019 and topped 34.07 Mbps in September. Pixabay

The 4G availability was 58.9 per cent in Pakistan and 58.7 per cent in Bangladesh during the same period.

Ookla looked at fixed and mobile download speeds in the 15 largest cities in India during 2019, Q2-Q3 and found out that Chennai had the fastest mean download speed over fixed broadband (51.07 Mbps), followed by Bengaluru (42.50 Mbps) and Hyderabad (41.68 Mbps).

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The slowest download speeds on our list were measured in Nagpur (20.10 Mbps), followed by Pune (22.78 Mbps) and Kanpur (23.20 Mbps). (IANS)