New Delhi (ABC Live): Black Money :A total of 644 declarations have been made under the compliance window provided in the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 which closed on 30th September, 2015. The amount involved in these 644 declarations was 4,164 crores.
The declarants were liable to pay tax at the rate of 30 percent and a like amount of 30 percent by way of penalty on the value of assets declared, by 31st December, 2015. The amount received by way tax and penalty upto 31st December, 2015 is Rs 2,428.4 crores. The shortfall is primarily on account of certain declarations, in respect of which there was prior information under the provisions of Double Taxation Avoidance Agreements/Tax Information Exchange Agreements or receipt of payment after 31st December, 2015.
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force with effect from 1st July, 2015. The Act provided for a one time compliance window to declare assets held abroad and pay due taxes and penalty on the value of assets declared.
Indian corporates invariably under invoice their exports and over invoice their imports from tax heaven countries such as Singapore, UAE, Hong Kong, etc. Thus the promoters of the public limited companies who hold rarely more than 10% of share capital, earn black money abroad at the cost of majority share holders and tax income to the Indian government.
Politicians, political parties and corrupt higher officials of government and its institutions take bribes from foreign companies and park/invest the money abroad in tax havens for transferring to India when needed. Many times locally earned bribes/funds/collections are also routed abroad through hawala channels for evading from Indian tax authorities and consequent legal implications.
The Vodaphone tax case is a glaring example where foreign multinational companies also evade tax payments in India by making transactions with shell companies registered in tax haven countries
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