What other
conclusion can we draw from the following news report ( Times of India / 03 May
2017 ) ?
“ In 2014 , $ 21 billion black cash exited India “
Over $21 billion worth of black money was
illegally taken out of India in 2014, according to the latest report by the
international watchdog Global Financial Integrity (GFI).
This illicit outflow was nearly 19% more than that recorded the previous year.
GFI has, for the first time, given information on the equally damaging inflow of illegal funds in this report, with India being the destination of a staggering $101 billion in 2014, up nearly 11% over the previous year.
About 87% of the global illicit financial flows are happening through trade mis-invoicing
Recommending a slew of measures, the report primarily suggests a much better trained and equipped customs staff and stricter scrutiny of trade deals.
It also indicates global cooperation in exchanging information on bank accounts, especially in tax havens.
I have no quarrel with GFI suggestion for
“ better trained customs staff “ and “ stricter scrutiny of trade deals “
I am not sure that could have made a dent
to that INFLOW into INDIA of $ 101 BILLION worth of BLACK MONEY , in 2014 !
Question is :
If we cannot STOP those INFLOWS , can we do
something to turn those
inflows into WHITE MONEY ?
So that , these illegal
inflows do not generate further BLACK MONEY ?
And get utilized productively in the MAIN STREAM ECONOMY
( eg : $ 300
Billion that Shri Nitin Gadkariji and Shri Piyush Goyalji , need for
transforming India ) ?
And generate MILLIONS of
NEW JOBS ?
Just as Indonesia
did , by announcing an AMNESTY
SCHEME last year, for bringing in BLACK MONEY by simply declaring
overseas hidden assets and paying 4 % tax ( no penalty of any kind ! )
INDONESIANS DECLARED $ 300 BILLION
!
I once again urge our Policy Makers to give a serious thought to my following suggestions
( earlier sent through emails ) :
·
MakeIndia , a Tax Haven ? ( 04
April 2016 )
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·
Short-Circuitingof Round-Tripping ? ( 07 April
2016 )
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·
WhiteHoles of Black Money ? ( 03
June 2014 )
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·
OneInfrastructure SPV ? More will follow ( 20
March 2017 )
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All this sterile / futile talk of , “ Punishing the honest tax-payers and Rewarding the
Tax-Evaders “ ( through AMNESTY SCHEMES ) is not going to take us
anywhere !
It is time to “ step back “ and view this problem from the perspective of the SAARC satellite
, orbiting at 35,000 Km above the earth !
06 April 2017
www.hemenparekh.in
/ blogs
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