|
| Assocham suggests amnesty to unearth black money |
| Press Trust of India / New Delhi Feb 07, 2012, 19:59 IST |
|
Amid government adopting multi-pronged strategy to deal with menace of black money, Assocham today suggested that the centre should come out with an amnesty scheme to unearth illegally stashed wealth abroad.
The government should come out with "an amnesty scheme for six months to bring back illegal funds stashed in foreign tax havens and a flat 40% tax on the disclosures on the current value", Assocham said its study on black money.
"The funds collected should be used to develop physical and social infrastructure in the country," Assocham President Dilip Modi said after submitting the report to Finance Minister Pranab Mukherjee.
While making the Amnesty proposal, Assocham said tax evaders should not be shown any leniency. "The fact remains that as on date it may not be possible to get hold of these persons who have stashed money abroad. That is why such scheme could be an invitation for these people to come forward and pay taxes," it said.
The amnesty scheme should be kept open for at least six months, Assocham said, adding that over a trillion dollars parked in overseas tax havens may help the country to bridge its deficits.
It said India also needs to conclude tax information exchange agreements with various countries and forge greater cooperation with G-20 partners to control the menace of black money.
The country has 83 double tax avoidance pacts but not all have clauses on exchange of tax information.
"A high rate of 40% tax with further investment of 10% in infrastructure bonds as compared to the present maximum tax rate of 30% will help ensure that there is no misuse of the scheme by unintended persons," the report said.
Government has formulated a five pronged strategy which consists of joining the global crusade against black money, creating an appropriate legislative framework, setting up institutions for dealing with illicit funds, developing systems for implementation, and imparting skills to the manpower for effective action.
Besides, the government has commissioned a study to estimate the quantum of unaccounted income and wealth inside and outside the country and its ramifications on national security. The study is to be submitted by September, 2012.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
