Bring back home black money stashed in foreign banks
The country celebrated the first anniversary of demonetisation as
‘anti-black money day’. Demonetisation showed meagre results in actually combating black money because most of the unaccounted money has
been moved overseas and invested in assets. Transactions in these cases are conducted under a thick veil of secrecy.
The Paradise Papers have 714 Indians featuring in them who have
unaccounted money overseas and are tax evaders in our country. This makes India rank 19 out of the 180
countries in terms of the number of entities named.
Undoubtedly, the resolve to fight tax evasion is quite strong, not only
in India but across the globe. The Indian government has enabled a series of
changes to laws to check tax evasion. The Government did take measures that will
help curtail future tax losses, but bringing back money that has been moved overseas over the last few
decades will not be an easy task. Only
when there is information sharing across
jurisdictions, that this money can be identified or brought back. Information-sharing with other countries could
be a step in the right direction.
Demonetisation will net small black money sharks and only bringing home
the humongous black money stashed in foreign banks that will do the real trick.
But that will be a mirage and no government will touch that area expecting a
backfire. Whatever may be the data supplied by Panama or the Swiss Bank it will
not be a penetrative one to unearth the huge money stored by unscrupulous
industrialists and politicians. Eye washing games will continue in this regard.
Companies and individuals find ways to evade taxes. The problem is rules are applied selectively
to punish some and favour some across the world.
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