RE: Electoral Reforms Through Backdoor ?

Harshad,

Thanks for drawing my attention

Just posted following blog ( and sent as emails to all Ministers etc )

Feel free to share

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

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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

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www.hemenparekh.in / blogs

05  April  2016

 

From: HARSHAD KHONA [mailto:hr.khona@gmail.com]
Sent: Monday, April 04, 2016 12:16 PM
To: Hemen Parekh
Subject: Re: Electoral Reforms Through Backdoor ?

Sir,

Pl read and watch Panama papers investigative report by Indian Express.

Regards,​

On Mon, Apr 4, 2016 at 11:53 AM, Hemen Parekh <hcp@recruitguru.com> wrote:

Electoral  Reforms  Through  Backdoor  ?

While refusing to entertain a PIL of eminent citizens seeking direction to Election Commission to verify details of persons contesting polls , the Supreme Court remarked :

"  It was for Parliament to act, as the court cannot ask the Election Commission to undertake this exercise

How do you expect the Election Commission to go on verifying details of thousands and thousands of candidates ? The task of verifying details including assets of candidates is cumbersome

The election reforms are long awaited . Only they ( legislature ) can make law , but we know that they will not do this

Persuade them ( Election Commission ) , outside the court . Let us see how they respond "

I get a feeling that Shri Arun Jaitleyji and the Income Tax Department overheard the honorable judges of the Supreme Court !

For 2016-17 assessment year, the tax department has unveiled new income tax return form

For persons with income above Rs 50 lakhs, it requires submission of following details ( with cost of each item ) :

*  All immovable assets ( such as land / buildings etc )

*  All movable assets ( such as Cash, Jewellery , Vehicles , Yachts etc )

*  All liabilities ( such as loans )

Here is what the Election Commission should do next :

*  Insist that each and every contestant files along with his / her nomination

    affidavit , copies of his / her income tax returns for past 3 years

That still leaves the question of " Verification "

Answer :

Alternative # 1 :

Using " Sampling Technique ", randomly select 10 % of the contestants and ask Income Tax authorities to verify their assets / liabilities

Alternative # 2 :

Select ( for verification ) those contestants , whose incomes have grown by more than 25 % over the past 3 returns

Electoral Reforms is merely a question of necessary " Will " on part of the Administrative wing

But even there , do not expect much when bureaucrats and ministers themselves , fail to submit their Assets Declarations to PM every year !

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www.hemenparekh.in / blogs

04  April  2016