Thanks, RK
Warm Regards,
Hemen Parekh
(M)=91 – 98,67,55,08,08
From: RAJKUMAR SETH
[mailto:rks_mayur@hotmail.com]
Sent: Friday, April 08, 2016 2:23 PM
To: hcp@recruitguru.com
Subject: RE: Short-Circuiting of Round-Tripping !
Sent: Friday, April 08, 2016 2:23 PM
To: hcp@recruitguru.com
Subject: RE: Short-Circuiting of Round-Tripping !
Have
already shared it with my IITK community.
Regards
R K Seth
Regards
R K Seth
From:
hcp@recruitguru.com
Date: Fri, 8 Apr 2016 10:59:37 +0530
Subject: RE: Short-Circuiting of Round-Tripping !
To: rks_mayur@hotmail.com
Date: Fri, 8 Apr 2016 10:59:37 +0530
Subject: RE: Short-Circuiting of Round-Tripping !
To: rks_mayur@hotmail.com
RK,
Thanks
Now help me spread the good words !
Warm Regards,
Hemen Parekh
(M)=91 – 98,67,55,08,08
From: RAJKUMAR SETH
[mailto:rks_mayur@hotmail.com]
Sent: Friday, April 08, 2016 10:33 AM
To: Hemen Parekh; shaktikanta.das@nic.in; narendramodi1234@gmail.com
Cc: Hasmukh Adhia; ajaitley@del5.vsnl.net.in; jayant.sinha19@sansad.nic.in; piyush.goyal@gov.in; nitin.gadkari@nic.in; spprabhu1@rediffmail.com; kalraj@kalrajmishra.com; bandaru@sansad.nic.in; amitabh.kant@nic.in; smritizirani@nic.in; nsitharaman@nic.in; nandan@nandannilekani.in; viral@juliacomputing.com; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; ceo-niti@gov.in; secy-ipp@nic.in; mcitoffice@gov.in; ravis@sansad.nic.in; sureshprabhu@irctc.co.in; prakash.j@sansad.nic.in; Business Leader
Subject: RE: Short-Circuiting of Round-Tripping !
Sent: Friday, April 08, 2016 10:33 AM
To: Hemen Parekh; shaktikanta.das@nic.in; narendramodi1234@gmail.com
Cc: Hasmukh Adhia; ajaitley@del5.vsnl.net.in; jayant.sinha19@sansad.nic.in; piyush.goyal@gov.in; nitin.gadkari@nic.in; spprabhu1@rediffmail.com; kalraj@kalrajmishra.com; bandaru@sansad.nic.in; amitabh.kant@nic.in; smritizirani@nic.in; nsitharaman@nic.in; nandan@nandannilekani.in; viral@juliacomputing.com; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; ceo-niti@gov.in; secy-ipp@nic.in; mcitoffice@gov.in; ravis@sansad.nic.in; sureshprabhu@irctc.co.in; prakash.j@sansad.nic.in; Business Leader
Subject: RE: Short-Circuiting of Round-Tripping !
HCP
Excellent
write-up & analysis.
Thanks
Regards
R K Seth
From: hcp@recruitguru.com
Date: Fri, 8 Apr 2016 10:23:54 +0530
Subject: Short-Circuiting of Round-Tripping !
To: hcp@recruitguru.com; shaktikanta.das@nic.in; narendramodi1234@gmail.com
CC: adhia1981@gmail.com; ajaitley@del5.vsnl.net.in; jayant.sinha19@sansad.nic.in; piyush.goyal@gov.in; nitin.gadkari@nic.in; spprabhu1@rediffmail.com; kalraj@kalrajmishra.com; bandaru@sansad.nic.in; amitabh.kant@nic.in; smritizirani@nic.in; nsitharaman@nic.in; nandan@nandannilekani.in; viral@juliacomputing.com; editor@recruitguru.com; ltstory@recruitguru.com; loksabha1@recruitguru.com; loksabha2@recruitguru.com; rajyasabha@recruitguru.com; tvanchor@recruitguru.com; ceo-niti@gov.in; secy-ipp@nic.in; mcitoffice@gov.in; ravis@sansad.nic.in; sureshprabhu@irctc.co.in; prakash.j@sansad.nic.in; businessleaders@recruitguru.com
Date: Fri, 8 Apr 2016 10:23:54 +0530
Subject: Short-Circuiting of Round-Tripping !
To: hcp@recruitguru.com; shaktikanta.das@nic.in; narendramodi1234@gmail.com
CC: adhia1981@gmail.com; ajaitley@del5.vsnl.net.in; jayant.sinha19@sansad.nic.in; piyush.goyal@gov.in; nitin.gadkari@nic.in; spprabhu1@rediffmail.com; kalraj@kalrajmishra.com; bandaru@sansad.nic.in; amitabh.kant@nic.in; smritizirani@nic.in; nsitharaman@nic.in; nandan@nandannilekani.in; viral@juliacomputing.com; editor@recruitguru.com; ltstory@recruitguru.com; loksabha1@recruitguru.com; loksabha2@recruitguru.com; rajyasabha@recruitguru.com; tvanchor@recruitguru.com; ceo-niti@gov.in; secy-ipp@nic.in; mcitoffice@gov.in; ravis@sansad.nic.in; sureshprabhu@irctc.co.in; prakash.j@sansad.nic.in; businessleaders@recruitguru.com
Short-Circuiting of Round-Tripping !
# What is Round
Tripping ?
Black Money
sent to tax havens ( eg: Panama ) for laundering and which returns to the
country of origin as White Money , in the form of investments
# What is the Global
Amount ?
Approx $ 23
Trillion ( China's GDP is about $ 17 Trillion )
# What is the
mechanism ?
In India ,
it is LRS ( Liberalized Remittance Scheme ), under which any Indian ( including
minors ! ) can remit abroad officially / legally , EVERY YEAR , $ 250,000 for
any of the following reasons (and without prior RBI permission ! ) :
*
Under Current Account
# Medical Treatment
# Education
*
Under Capital Account
# Buying Property overseas
# Holding shares in an overseas company
# Combination of these two
# What is the
safeguard ?
Details of
foreign assets have to be declared in the Income Tax Returns
# How black money
gets sent to tax havens ?
Some amount
by Hawala route but most by legitimate banking channels !
You don't
see plane-loads of cash landing in Panama !
# Does that mean
Indian Banks are party to these ?
Without
doubt ! They will advise you how to do this ! Of course, legally !
# If these
remittances are legal, will 500 Indians get jail ?
Forget it !
Most legal
experts say , they will be let off with some fines , if they have failed to
declare these assets in IT returns
# Are laws designed
so as to prevent Round Tripping ?
Far from
that ! Here is what President Obama said yesterday :
"
There is no doubt that the problem of global tax avoidance generally is a huge
problem
The
problem is that a lot of this stuff is legal , not illegal
We
shouldn't make it legal to engage in transactions just to avoid taxes
A lot of
these loopholes come at the expense of middle class families
Alternatively
, it means that we are not investing as much as we should in schools , in making
college more affordable, in putting people back to work rebuilding roads, our
bridges, our infrastructure , creating more opportunities for our
children "
# What is
the best SOLUTION ?
* Make it unnecessary for our Black Money to first travel
abroad ( to tax havens ) , before returning ( as White Money ) and getting
invested in capital market
* Short-circuit the Round Trip by enabling our Black Money
to become White Money , HERE itself ( no need for help from Mossack
Fonseca ! )
* As suggested in my recent blog ( Make India a Tax Haven ?
), abolish Personal Income Tax ( remove incentive for tax evasion )
* Enable direct investment of " Black-turned-White
" money into government approved INFRASTRUCTURE BONDS , thru creation of
designated bank accounts where Black Money can be deposited , without any
questions asked
* Obviously , interest / dividend earned from such
investments will be tax
free
, being Personal Income !
# Is this a practical
solution ?
Not if you ask
the Economists / Bankers etc
Just ask
the man on the street !
This is a too serious matter to be left to the Experts !
# Will such a bill
pass the legislative muster ?
Rahul
Gandhi promised to pass the GST bill in 15 minutes if amendments proposed by
Congress get incorporated
" Short-circuiting of Round-Tripping Bill " will get passed
in 5 minutes - and unanimously too ! You know why !
---------------------------------------------------------------------------------
www.hemenparekh.in / blogs
08
April 2016
Warm Regards,
Hemen Parekh
(M)=91 – 98,67,55,08,08
From: Hemen Parekh
[mailto:hcp@recruitguru.com]
Sent: Tuesday, April 05, 2016 11:52 AM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'; 'secy-ipp@nic.in'; 'mcitoffice@gov.in'; 'ravis@sansad.nic.in'; 'sureshprabhu@irctc.co.in'; 'prakash.j@sansad.nic.in'; Business Leader
Subject: Making India a Tax Haven ?
Sent: Tuesday, April 05, 2016 11:52 AM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'; 'secy-ipp@nic.in'; 'mcitoffice@gov.in'; 'ravis@sansad.nic.in'; 'sureshprabhu@irctc.co.in'; 'prakash.j@sansad.nic.in'; Business Leader
Subject: Making India a Tax Haven ?
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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