What Goes Out , Comes Back ?

What other conclusion can we draw from the following news report ( Times of India / 03 May 2017 ) ?

“ In 2014 , $  21  billion black cash exited India “

Over $21 billion worth of black money was illegally taken out of India in 2014, according to the latest report by the international watchdog Global Financial Integrity (GFI).

This illicit outflow was nearly 19% more than that recorded the previous year.

GFI has, for the first time, given information on the equally damaging inflow of illegal funds in this report, with India being the destination of a staggering $101 billion in 2014, up nearly 11% over the previous year.

About 87% of the global illicit financial flows are happening through trade mis-invoicing

Recommending a slew of measures, the report primarily suggests a much better trained and equipped customs staff and stricter scrutiny of trade deals.

It also indicates global cooperation in exchanging information on bank accounts, especially in tax havens.

I have no quarrel with GFI suggestion for “ better trained customs staff “ and “ stricter scrutiny of trade deals “

I am not sure that could have made a dent to that INFLOW into INDIA of $ 101 BILLION worth of BLACK MONEY , in 2014  !

Question is :

If we cannot STOP those  INFLOWS , can we do something to turn those inflows into WHITE MONEY ? 

So that , these illegal inflows do not generate further BLACK MONEY  ?

And get utilized productively in the  MAIN  STREAM  ECONOMY  ( eg : $ 300 Billion that Shri Nitin Gadkariji and Shri Piyush Goyalji , need for transforming India ) ?

And generate  MILLIONS  of  NEW  JOBS  ?

Just as Indonesia did , by announcing an AMNESTY SCHEME last year, for bringing in BLACK MONEY by simply declaring overseas hidden assets and paying 4 % tax ( no penalty of any kind ! )

INDONESIANS  DECLARED  $  300  BILLION  !

I once again urge our Policy Makers to give a serious thought to my following suggestions ( earlier sent through emails ) :

·         MakeIndia , a Tax Haven  ?  ( 04  April  2016  )

    { https://myblogepage.blogspot.com/2016/04/making-india-tax-haven.html  }

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·         Short-Circuitingof Round-Tripping ?  (  07 April  2016  )

    { https://myblogepage.blogspot.com/2016/04/short-circuiting-of-round-tripping.html }

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·         WhiteHoles of Black Money  ?  ( 03  June  2014  )

    { https://myblogepage.blogspot.com/2014/06/white-holes-of-black-money.html  }

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·         OneInfrastructure SPV  ?  More will follow  ( 20  March  2017  )

    { https://myblogepage.blogspot.com/2017/03/one-infrastructure-spv-more-will-follow.html  }

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All this sterile / futile talk of , “ Punishing the honest tax-payers and Rewarding the Tax-Evaders “ ( through AMNESTY SCHEMES ) is not going to take us anywhere !

It is time to “ step back “ and view this problem from the perspective of the SAARC satellite , orbiting at 35,000 Km above the earth !

06  April  2017

www.hemenparekh.in / blogs