Making India a Tax Haven
?
Yesterday's
leak / report " PANAMA PAPERS ",
revealed that some 500 Indians have stashed away abroad , billions of dollars
worth of " Undisclosed Assets " , courtesy Mossack Fonseca of Panama , a money laundering law firm with
staff of 600 , operating in 42 countries and having a client-base of 300,000
Now
Panama is not the only tax haven on earth
There
are others such as Switzerland , Cyprus, British Virgin Islands , the Isle of
Man , Guernsey , Jersey etc
Nor
is Mossack Fonseca the only money launderer. It is only the 4th biggest
Acting
unusually fast , Union Government has set up a multi-agency group to
investigate and bring to book , the suspected Indian tax evaders
While
wishing all luck to this Group , we cannot overlook the terribly disappointing
results of the Supreme Court monitored SIT , during the past 16 months ( viz:
discovery of illegal assets worth around Rs 6500 Crore )
Experts
are clamoring :
*
Tighten existing laws
*
Make illegal , anonymous investments ( eg: Participatory Notes )
*
Pass law to declare all undisclosed foreign assets as " National Property
"
MY SUGGESTION :
*
If you cannot lick them , join them !
*
Abolish Personal Income Tax
*
And , instead of a Tax Return , every existing tax
payer ( approx , 4 cr )
to file , annual DECLARATION
OF ASSETS ( Movable and Immovable )
*
Introduce Amnesty Scheme under which , no questions
will be asked as
to the source of any amount of CASH
deposited in a person's SPV
INFRASTRUCTURE account ( at any local
Indian bank of his choice )
*
Encourage those 500 Indians to liquidate those
Undisclosed Assets
abroad and deposit that CASH in SPV
INFRASTRUCTURE accounts
Of course , all Indian citizens can do
likewise !
*
SPV INFRASTRUCTURE accounts can be used ONLY for
investing in
government approved Infrastructure Funds (
especially funds devoted
to Renewable Energy / Swatchh Bharat /
Health / Education / Homes
costing less than Rs 5 lakhs , etc )
*
Make India a Tax Haven of sorts !
By
no stretch of imagination , I am suggesting that India becomes a destination
for parking
*
Drug Mafia money
*
Terrorist Money
*
Bribe Money for international purchase contracts ( defense etc)
All
I am saying is :
*
Take away incentive to evade taxes , thereby
stopping future generation
of Black Money
*
Channel all existing Black Money ( locked up in assets
, in India or
abroad ) into the main stream of
economy ( Infrastructure Building )
*
Enable current annual inflow of inward remittances
from overseas
Indians to go up from $ 70
Billion to $ 700 Billion
*
Through rapid development of Infrastructure ,
generate Self
Employment for 12 million youth
every year
*
Drastically reduce FDI requirement for rapid
growth of economy
*
By cutting down on government outlay for
Infrastructure , reduce govt
borrowing from market and
consequent debt servicing
*
Raise GDP to 10 % by 2018
It
is time to stop tinkering when govt has miserably failed to bring out black
money stashed abroad (or locally) , nor succeeded in stopping future generation
of Black Money
It
was good that the NDA Government raised the expectations of citizens
Now
, it is time to deliver on those expectations before Assembly Elections get
over in 5 States
-------------------------------------------------------------------------------------
www.hemenparekh.in / blogs
05
April 2016
----------------------------------------------------------------------------
hemen parekh
Marol , Mumbai , India
( M ) +91 - 98,67,55,08,08
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