Wednesday, 25 July 2018

Government steps in curbing the black money stashed abroad

The Government of India has taken various steps for curbing the black money stashed abroad, which have led to positive results. These steps include, inter alia, the following:
  1. India has been a leading force in the efforts to forge a multi-lateral regime for proactive sharing of Financial Information known as Automatic Exchange of Information (AEOI) which will greatly assist the global efforts to combat tax evasion. The AEOI based on Common Reporting Standard (CRS) has commenced from 2017 enabling India to receive financial account information of Indian residents in other countries.  India has also entered into information sharing agreement with the USA under the Foreign Account Tax Compliance Act (FATCA) of USA. The exchanges under FATCA have taken place for the financial years 2014, 2015 and 2016.
  2. Indian Government has been proactively engaging with foreign governments, for exchange of information under Double Taxation Avoidance Agreements (DTAAs)/Tax Information Exchange Agreements (TIEAs)/Multilateral Convention on Mutual Administrative Assistance in Tax Matters/South Asian Association for Regional Cooperation(SAARC) Multilateral Agreement.
  3. India and Switzerland have in place a Double Taxation Avoidance Agreement (DTAA), which entered into force on 29th December, 1994.  Protocol amending the Agreement came into force on 07th October, 2011.  Based on the provisions of DTAA, the two countries exchange information on a request basis, which is foreseeably relevant to the administration or enforcement of the domestic laws concerning taxes covered by the Agreement.  India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which the Automatic Exchange of Information (AEOI) is activated between the two countries for sharing of financial account information effective from 01.01.2018 with first transmission in 2019.  Accordingly, India will receive the information of financial accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.
  4. A Special Investigation Team (SIT) on Black Money has been constituted in May 2014 under the Chairmanship and Vice-Chairmanship of two former Judges of the Hon’ble Supreme Court. Investigation into cases involving substantial black money/undisclosed income, particularly black money stashed abroad, is being extensively and intensively monitored by the SIT.
  5. The Government enacted a comprehensive and a more stringent new law, namely, the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 that has come into force w.e.f. 01.07.2015. Apart from prescribing more stringent penal consequences, this law has included the offence of willful attempt to evade tax etc. in relation to undisclosed foreign income/assets as a Scheduled Offence under the Prevention of Money-laundering Act, 2002 (PMLA).
  6. The Government gave a one-time compliance window of 3 months for providing an opportunity to taxpayers to make declarations of their undisclosed foreign assets before they were subjected to more stringent provisions of the new law i.e. the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. 648 declarants filed declarations up-to 30.09.2015, which was the last date of filing such declarations, disclosing undisclosed foreign assets worth Rs.4,164 crores. An amount of about Rs.2,476 crore has been collected as tax and penalty in such cases.
  7. The Government has taken pro-active and effective steps whenever any credible information has been received with regard to black money stashed abroad, whether in HSBC cases, ICIJ cases, Paradise Papers or Panama Papers. These steps include constitution of Multi Agency Group in relevant cases, calling for definitive information from foreign jurisdictions, bringing the black money to tax under relevant law launching prosecutions against the offenders etc.
  8. Swiss Authorities have shared the following information regarding the Swiss National Bank (SNB) figures quoted in the media “The figures published by the SNB are regularly mentioned in the Indian media as a reliable indicator of the amount of assets held with Swiss financial institutions in respect of Indian residents. More often than not, the media reports have not taken account of the way the figures have to be interpreted, which has resulted in misleading headlines and analyses. Moreover, it is frequently assumed that any assets held by Indian residents in Switzerland are undeclared (so-called ‘Black Money’).”
  9. Further they have said “To analyze Indian residents’ deposits held in Switzerland, another data source should be used. This is the so-called “Locational Banking Statistics”, which the SNB collects in collaboration with the Bank for International Settlements (BIS).”
  10. The Data Collected by Swiss National Bank in collaboration with Bank forInternational Settlements (BIS) shows that the loans and deposits of Indians, other than Banks, in the Swiss banks decreased by 34.5% in the year 2017 as compared to 2016. Further, there has been significant reduction in Swiss non-bank loans and deposits of Indians by 80.2% between 2013 and 2017.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha today.

Tweets against saffrons take care?

Modi Rafel deal lack transparency
Congress on Tuesday gave notices for breach of privilege against PM Narendra Modi and DM Minister Nirmala Sitharaman in Lok Sabha for “misleading” the House on the Rafale deal issue. Congress:black money, Unemployment, Lokpal,NPA banks crisis,agri income deplete
Narendra Modi for 2019 @
Congress Party’s strategists have invented & manufactured a fake issue of the Rafaledeal. The issue is failing to cut much ice. It’s a Government to Government agreement with no private group involved. PM  led scam free Government is a challenge to Congress Party.

Growing unemployment for youths
Promise was of 2cr jobs for youth , but unemployment growing rapidly since last 3years, the current situation of youth unemployment in Himachal .This is the only reason for growing crime day by day. So request you to have an serious look into this .Kashmir is facing today is the growing number of unemployed youthUnemployment & poverty go hand in hand. & with businesses in the Valley remaining shut for days and weeks and sometimes months together. NDA records accords 50Lakh job in last four years.
Black money stashed abroad:
Stashed black money in foreign banks, has risen. Money parked by Indians in Swiss banks rose over 50% to Swiss Francs (CHF) 1.01 billion (₹7,000 crore) in 2017, reversing a three-year downward trend amid India’s clampdown on suspected black money stashed there.
No appointment of Lokpal,
No appointment of LokpalNo appointment of Chairman of SC, ST Commission, or Backwards or Minorities !
Dilute RTI, No CIC, No Lokpal, Dilute WhitleBlower Act, Dilute Appointment of SC Judge,  anger in SC/ST, dalits & minority.
: Centre files affidavit after a meeting of the Selection Commitee. SC says the affidavit is “unsatisfactory”. No Search committee for appointment of Lokpalconstituted yet. SC had earlier said “optimistic that search committee will be duly appointed”
NPA Banks of Nationalised banks total chaos .mess.
 Banks  saving a dying system that creates tremendous inequality in wealth, threat to 11 nationalized banks under the npa government
Farmers and agri sections  income deplete,
MSME no ease of business 
We need to give du focus to improving business environment for MSME also. red carpet welcome to microsoft & Nissan, no support for MSME. There is no ease of doing business in Karnataka for MSME No clarity regarding property tax in panchayat area. The business sentiment is so bleak – big corps are in a funding mess we’re now seeing big corporations stiff small/medium size vendors for receivables — seeing delays in payments to msmes by 90 days over, no msme will survive, NONE
Cows vigilant lynching.
India being among the largest beef exporters in the world.


‘MACRON’S WATERGATE’ IS ALEXANDRE BENALLA

French President Emmanuel Macron has decided to take the hit for the unfolding Alexandre Benalla affair, saying he’s responsible for all the actions of his violent aide, who was filmed beating demonstrators during a May Day rally.
“If they are looking for the one responsible, the only one responsible is me and me alone,”Macron told fellow parliamentary party lawmakers on Tuesday, as quoted by BFM TV. “If they want the one responsible, he’s in front of you. Let them come and get me. I answer to the French people.”
Emmanuel Macron’s presidency is being battered by its worst scandal so far and at the center of it is the protester-beating bodyguard Alexandre Benalla, a young man with a surprisingly successful career On May 1, a man wearing a police helmet was filmed roughing up unarmed protesters at an anti-Macron rally in Paris. In mid-July, he was identified as Macron’s bodyguard Benalla. This has given rise to a scandal that could swell up to what the opposition called& with French politicians baffled by the lengths to which Macron’s team has gone to protect the bodyguard.
Macron on Tuesday called the scandalous May 1 events a “betrayal,” adding that he had “trusted” Benalla. The French president at the same time stressed that he was also the one who authorized a “sanction” against the rogue aide, adding that none of his staff was above the law.
The said sanction, however, had seemingly only taken effect when the affair went public, which forced the presidential administration to sack Benalla.
Immediately after the incident, Benalla got away with only a two-week suspension without pay. The violent aide was later spotted overseeing the security of the French football team’s bus during their triumphant return from the 2018 World Cup.

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