The
usual uproar from the man in saffron and the people in BROOMS have tried to intensify the topic in recent years but the steps taken up by the apex court have stamped
its due significance.
Although the government have tried to sensualise the matter by disclosing names in instalments
but the stern action by the court can be seen in the form of ‘active –judicial activism’ in a
surplus-majoritarian political arena.
The
concept of black money can be defined in more lucid manner as a means to hide
what you want not to hide. The idea of hiding money may be economical and an
edge on break –even analysis but the newly established policy under double
avoidance clearly shows a decisive way of tax evasion.
It
would be absurd to think that money have been kept in a shelf for years generating fixed deposit interest so as to
make its use at due time because a micro analysis of this vicious pattern clearly
reflects the transformation of various channels contained in ‘ white machineries and institutions’.
The process of whitening money may takes some time but the immediate effect is
seen when an individual or a firm invest in more erratic manner violating the
general principle of market and commerce.
Money going through HAWALA
stays in the shelf for 1-2 years, earns profit and thus making it matured
enough to be invested again in parent country in form of HOT MONEY, FDI and FII.
The
purpose of international information sharing have always advocated the enlarged
panorama of a global village ,so it’s natural to see Swiss bank making pseudo policy on account holders not
disclosing names public static its own policy of bank. When it comes on Indian
account holders it becomes more incognigable by the turned FERA INTO FEMA. Earlier the provision under FERA explains these
activities under criminal activities but the new law shadows its core definition
by terming it as a ‘civil violation’. Also the Swiss law pertained to this issue behaves
in consonance with the Indian FEMA.
Now
prime question comes about taking information under democratic formal framework
between nations .It becomes obvious and natural to thank a German spy taking
data from the bank and distributing it among concerned nations. So governments
pro argument relating GAAR act seems
fallible and immature.
Now
the constructive part of the issue can be interpreted in terms of investigating
the matter under SIT, make the names
disclosed in procedural manner and convict the accused. Various ways by which the culprit can have
fencing the bars in terms of saying that he/she is an NRI OR any government can’t
charge dual taxation on the same amount. Counter argument can place them
miserably by stating articles under hiding information ,making money by unfair
means and companies act -2103.Bringing
back the stashed money may be a
difficult process but a strong ‘determination’ not law, will prove
apprehensive, considering the govt
compliance of making balance between international treaties and national interest.
What
is your view on government's position on bringing back black money?
(Written
by Praveen Kumar, an IAS aspirant
and ex-Infoscion)
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