15 December 2014

Pin It

Black Money SIT Demands Make Tax Evasion a Criminal Offence

Black Money SIT Demands Make Tax Evasion a Criminal Offence

Presently in India Tax Evasion, or not paying the taxes is a civil offence
It is dealt under the Income Tax Act, 1961 while forex violations are dealt under the Foreign Exchange Management Act (FEMA).

Thus if one has a power to pay to top lawyers in India you do not need to pay taxes one can fearlessly, purposefully avoid taxes and live life happily including next generations.

In more than 25 countries not paying taxes is a criminal offence but India is such a great nation that here writing an article, sharing or giving like on a facebook post is a criminal offence and police can arrest

Special Investigation Team on black money said that Tax evasion needs to be made a serious 'criminal offence' to force foreign countries to reveal names and account details of Indians stashing illicit wealth abroad

SIT Chairman former Supreme Court judges MB Shah told to media that
"We have made a serious pitch for this (making tax evasion a serious criminal offence in India). One reason is that, if tax crimes remain civil in nature, the foreign governments will not cooperate,"
"If this is made a crime, then there is no difficulty and then they (foreign countries) are bound to reveal the names. That is the main purpose,"

SIT has suggested making tax evasion of Rs 50 lakh and above a 'predicate offence', saying this would enable easier investigation into tax evasion crimes under the stringent laws of money laundering as stipulated under the Prevention of Money Laundering Act (PMLA).

SIT member Arijit Pasayat told to media that there is also a need to limit holding and transportation of cash and to check large-value 'unreported' cash dealings that are rampant even at public places like shopping malls.

As politicians in India failed in last 65 years The Supreme Court of India formed SIT,
Recently SIT submitted its latest report on black money menace, wherein it has disclosed tracing of Rs 4,479 crore held by Indians in a Swiss bank and unaccounted wealth worth Rs 14,958 crore within India.

As per my knowledge and understanding this is just a 1% of black money information.

In the United States, tax evasion constitutes a crime that may give rise to substantial monetary penalties, imprisonment, or both. 

Section 7201 of the Internal Revenue Code reads, “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”

If any USA citizen opens account in  other nation he has to inform to IRS , even banks need to inform to IRS US government.

In short Suggested Reforms are –

Not paying taxes make it a criminal offence

Punishment – Minimum 50 years with no right to any court or pm or president to reduce the punishment

Fine amount – Minimum 50 times
Tax avoider should become a beggar if found guilty in one case

Limiting cash possession in metro cities everyone can use debit card, credit card

No permission to companies to use cash for the transactions which are above Rs. 5000 Use only checks

Reality views by sm –

Monday, December 15, 2014

Tags – Black Money India


Renu December 16, 2014  

I dont agree that we need such harsh laws..laws are still good but implementation is not. harsher lawas will make way for more corruption only..as it is IT people leave big people and harraass people for little little details.

rudraprayaga December 17, 2014  

Laws and rules are there for common man.with others so many chaos which in due course fade away.Thank you for the info.