Pass a law to bring back black money from Swiss bank

Mauritius sharing info on black money with India

What is Black Money?

Income on which tax is evaded

When a seller of property receives part of the sale proceeds in cash, and doesnt show it in its tax accounts. Or, when a company shows fictitious expenses to pay less taxes.

Black Money: How is it generated?

Not paying taxes Giving incorrect proportions to their incomes Earned by gifts, Hawala transactions and illegal foreign exchange deals Over billing/ under billing (Under pricing of sales) and exaggeration of expenses Fictitious Vendor

Black Money: Consequences

Running a parallel economy Unequal distribution of wealth Violation of rules and provisions stipulated by government rise in corruption Chief inhibiting factor in the process of national economic development. $462 billion of unaccounted wealth has been sneaked out of India between 1948 to 2008

Causes for generation of Black Money

News: National and International

Black money in Kolkata can halve Bengal's debt (2 Feb,2011)

Tehelka reveals black money list; government sends notices (5 FEB, 2011)

Black money: Investments from tax havens may be blocked (24 FEB, 2011)

Ex-CJI's (K G Balakrishnan) 3 kins found in possession of black money: I-T dept (26 Feb, 2011)

Union Budget 2011: 'Five-fold strategy to deal with black money menace (28 FEB, 2011)

How Black Money go from India???

Swiss Bank- India

Rs 70 lakhs crores of India are lying in Swiss Banks Indian Government has not sent any official enquiry Black Money = 13* Indias foreign debt Interest = Centres Yearly Budget With the remaining money, each Indian would get Rs 50,000/- each

Mauritius- not just a tourist spot

21-year old DTAT is misused by businessmen to channelize the black money into India as FDI Small offices money laundering convert their black money into white through FDI in India ($8.7 billion) As per the government all the activities are made within the legal framework Mauritius government has imposed a condition that no company with Indians interest would be registered & residential proof conditions are tightened.

Hundreds of ways to indulge in Adharma

Under invoicing/ Over invoicing of exports & imports Kickbacks from major defense/ civilian contracts Smuggling of gold & illegal currency Hawala Funds Funds earned by entertainment industry & sports people

Self-dignity

It should not be treated as an election issue. The matter should be taken up and if not taken then we will become a laughing stock of the entire world. Developed economies are desperate for every dollar.

Governments Five Fold Strategy

Joining Global Crusade against black money Creating an appropriate legislative framework Setting up institutions for dealing with illicit funds Developing systems for implementation Imparting skills to manpower for effective action.

DTAA and ETIA have been amended & agreements signed ( addition of banking clause) DTAAs with 79 countries and modifications in such pacts are needed in 74 of them to broaden the scope of exchange Exchange Tax Information Agreement bilateral Costa Rica, Seychelles, Cayman islands, Mauritius

Other Measures

Digitize Information reduce information asymmetry Make land records digitization mandatory algorithmic value estimation Demonetize large currency notes major discrepancy between currency with public & currency in circulation encourage use of plastic money & electronic fund transfer

DTC to check transfer pricing Review and abolition of discretionary powers enjoyed by ministers Fast tracking of cases against public servants charged with corruption