India continues its strong show in black money list

[prasad1]

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India ranks fourth in black money outflows with a whopping USD 51 billion siphoned out of the country per annum between 2004-2013, a US-based think-tank's report said today. Notably India's defence budget is less than USD 50 billion. China tops the list with USD 139 billion average outflow of illicit finances per annum, followed by Russia (USD 104 billion per annum) and Mexico (USD 52.8 billion per annum), according to the annual report released by Global Financial Integrity (GFI), a Washington-based research and advisory organisation.

The illegal capital outflows stem from tax evasion, crime, corruption and other illicit activity, the report said, according to which a record USD 1.1 trillion flowed illicitly out of developing and emerging economies in 2013, the latest year for which data is available.
In all, during this decade-long period of 2004-2014, GFI estimates that more than half a trillion (USD 510 billion) went out of India and in the case of China the figure was USD 1.39 trillion and Russia USD 1 trillion.
Titled Illicit Financial Flows from Developing Countries: 2004-2013, the study shows that illicit financial flows first surpassed USD 1 trillion in 2011 and have grown to USD 1.1 trillion in 2013, marking a dramatic increase from 2004, when illicit outflows totalled just USD 465.3 billion.
China also had the largest illicit outflows of any country in 2013, amounting to a staggering USD 258.64 billion in just that one year, the report said.
"This study clearly demonstrates that illicit financial flows are the most damaging economic problem faced by the world's developing and emerging economies," said GFI President Raymond Baker, a longtime authority on financial crime.
"This year at the UN the mantra of 'trillions not billions' was continuously used to indicate the amount of funds needed to reach the Sustainable Development Goals.
Significantly curtailing illicit flows is central to that effort," he said. Noting that Sustainable Development Goals (SDGs) calls on countries to significantly reduce illicit financial flows by 2030, the report said the international community has not yet agreed on goal indicators, the technical measurements to provide baselines and track progress made on underlying targets and subsequently the overall SDGs.
In its report, GFI recommends that world leaders should focus on curbing opacity in the global financial system, which facilitates these outflows.
Governments should establish public registries of verified beneficial ownership information on all legal entities and all banks should know the true beneficial owner(s) of any account opened in their financial institution, it said.
Policymakers should require multinational companies to publicly disclose their revenues, profits, losses, sales, taxes paid, subsidiaries and staff levels on a country-by-country basis, it said, adding that all countries should actively participate in the worldwide movement towards the automatic exchange of tax information as endorsed by the OECD and the G20.
Customs agencies should treat trade transactions involving a tax haven with the highest level of scrutiny, the report said. Governments should significantly boost their customs enforcement by equipping and training officers to better detect intentional mis-invoicing of trade transactions, particularly through access to real-time world market pricing information at a detailed commodity level, it said.
GFI recommended that governments should sign on to the Addis Tax Initiative to further support efforts to curb IFFs as a key component of the development agenda.

http://www.sify.com/finance/india-c...ck-money-list-news-finance-pmjkxfjgggicd.html

What happened to the election promise of bringing back all the black money?

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[prasad1]

Rediff.com takes a look at some of the prime minister’s tall assurances.

• People say that if the black money stashed in foreign bank accounts is brought back and distributed amongst the poor in India, then each poor man will pocket Rs 3 lakh each.
• “I have decided if you bless me and give me the opportunity I will bring back all the black money.”
• “When we bring back the black money, we will give it to regular salary holders. We must honour their patriotism. Till the time we don’t bring black money, such thefts will continue. So to stop new thefts and such cases, all black money should be brought home to teach one and all a lesson.”
• “I will bring back every rupee that is stored away in foreign banks, any which way, and ensure that it is used for the rehabilitation of the poor in the country.”
• “LK Advani carried out a yatra at such an old age to bring about awareness about black money stashed away in foreign banks. Baba Ramdev has also taken up the issue, even the BJP is fighting this battle but the Congress is afraid of this fight.”
• “There is so much of wealth stored in foreign banks. But, the government at the Centre has done nothing to bring back the money. Hence, there are suspicions that the central government too has something to hide. People are going hungry but the government doesn’t care.”

http://www.rediff.com/news/report/f...di-promised-india-on-black-money/20141029.htm

 

[yesmohan]

As it was assured earlier several times, the government at the Centre has done nothing to bring back the black money 'hiding' abroad.
Either the central government too has something to hide or store it an " Asthra " for the next election as it has exhausted all other weapons.

 

[GANESH65]

It is never going to be easy to brink back money stashed out side our country. The best thing to do is to identify the people who have parked money in foreign land and start blocking their interests in India. In my opinion this would be the only to force people from further stacking their wealth out side India.

 

[sangom]

As it was assured earlier several times, the government at the Centre has done nothing to bring back the black money 'hiding' abroad.
Either the central government too has something to hide or store it an " Asthra " for the next election as it has exhausted all other weapons.

What doubt is there? — even the present govt. at the centre is financed by black money. So, if an honest job is done, probably a lot of heads will have to roll even from the government, or else, it will have to remain thick-skinned as it has done in the case of the (Lalit) Modigate scam!

 

[krish44]

Black money is all pervasive.

Infact it contributes to GDP in a big way.

The sectors like real estate, films , electioneering are all fuelled by the parallel economy.

The only fear is that terror funding should not get linked with it . Hence the need to crack down.

Normal kirana shops do business only in cash and most are not accounted as they are outside the banking system.

Lakhs spent in marriages are unaccounted money . The well off use marriages to turn black into white.

The govt can only put some checks and try to regulate the parallel economy based on black money to some extent.

Crippling it totally will damage the indian economy.

If taxes are reasonable all will pay. If it is more than 30-40 percent then some are tempted to evade/avoid the same.

Real estate is totally crippled due to crackdown on black transactions. Economy will go into doldrums due to over drive on tax evasion

 

[tks]

No single leader, however principled can root out the cancer of corruption that has become a way of life in India.

Bringing back money from outside will mean that the party entrusted to handle this itself is not corrupt. BJP I suspect is just as corrupt or 'want to be corrupt' as Congress.

I do have first hand information about how corruption is not tolerated at certain quarters. One of my friends is in a very senior position and has influence to select people for promotion to top spots in certain sectors of the government as part of a special committee. He told me that there had not been one phone call to him to influence the outcome of his committee. The progress is there is small measure.

The big change cannot come since the structured society has large number of people who extoll the virtues of corruption and practice it as a way of life. I hope in another 5 years the situation improves. I think technology of data mining has to be leveraged to catch the culprits. I also think all Government people have to be paid lot more salary perhaps twice so that there is no need to rely on black money based income.

 

[krish44]

Does anyone think in US there is no corruption ? Corruption has nothing to do with salaries of people. Normally highly paid are more corrupt than lowly paid. Lowly paid

participate in only petty corruption and not worth taking note off . It is mostly speed money for fast action or out of turn acquiring of an essential low cost resource.

Both US and India have high level corruption . Big money changes hands in india to swing deals for MNCs with americans participating in them . American

govt participates freely in third world countries to reward dictators there for aiding their interests and swing business for MNCs. It is big money corruption that is

worrying.It is the capitalist countries which promote large scale corruption anywhere in the world.