Professional Documents
Culture Documents
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue
The painting is 4feet by 4feet acrylic on canvas titled “Aspirations of a rising people” made by Vishal V. Sharma in 2007
• They ask no questions on the origins of the money coming into their banks.
• They keep all banking records secret and cooperate very little with other
countries.
Money involved
• Total dirty money in tax-havens = $11.5 trillion (Rs 7.5 crore-crore)
• Estimated Indian black money in foreign banks $500 billion (Rs 25 lac-crores)
• 2002-2006 (5 years) $137.5 billion Indian black money deposited (Rs 68,750 crores)
• Source of info: Capitalism's Achilles' Heel: Dirty Money, & How to Renew the Free-Market
System.“ (2005) by Raymond W. Baker, MBA (Harvard) & Brooking’s Scholar
• Henry, James S., "The Blood Bankers: Tales from the Global Underground Economy."
Role of Switzerland
• Swiss ambassador, “Switzerland was accused of giving shelter to black
money and there has been a lot of inflow of such wealth from India….”
[NDTV Profit 15-03-2008]
• Switzerland must follow Germany’s model which is willing to give the details
of all Indian names in the LGT Bank secret records.
G20 stance
• At the London G20 summit on 2 April 2009, G20 countries agreed to define a
blacklist for tax havens.
• At first UK did not support this, but public criticism forced UK PM Gordon Brown to
change tracks & issue a statement, “This is the start of the end. The era of
banking secrecy is over.”
• Jairam Ramesh, “(BJP’s) entire edifice of numbers on the black money issue is
a total hoax.” Congress party must stop attempts to trivialize the issue.
• Has done little against, if not encourage, such illegal transfers – case in point is
the unfreezing of accounts of the prime accused in the Bofors Scandal, Ottavio
Quattrocchi, the Italian middle-man and a family friend of Sonia Gandhi
BJP’s promise
• World respects a powerful domestic opinion on global issues, BJP will build
national consensus on the issue through massive opinion building exercise
as was done by Narendra Modi in Gujarat.
• BJP will work with other countries, such as the US, UK, Germany and
France to build international consensus and pressurize tax-havens to
disclose account details of illegal Indian money.
• BJP has already created a task-force to make this happen and a detailed
plan has already been outlined.
• The money will be redeployed for the progress of the country as detailed in
various BJP Vision documents.
Rs. 25 Lac-crores kitna hota hai? (EDUCATION)
A world-class institute, like an IIT, costs 760 crores to setup
With Rs. 25 Lac-crores, India can build 3,300 new such IIT-like educational institutes
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue
• Germany and France take the issue of secret banks and tax havens in the
G20 preparatory meeting at Berlin In February 2009. India keeps quiet.
• These two nations and supported by UK and the US raise the voice against
secret banks and tax havens in London in April 2009, India keeps quiet.
• German govt. offers to open secret names of the account holders in LGT
Bank of Liechtenstein. India keeps quiet.
• Why India has not effectively worked to get the names of several Indians
believed to be in the secret records?
• Develop national will & agenda against black money in foreign banks.
• Get immigration details of the 25,000 frequent travellers to tax havens.
• Upgrade Financial Action Task Force (FATF) membership to full.
• Make specific anti-tax haven laws.
• Publicize entire economic history of overseas account holders.
• Demand LGT Bank of Liechtenstein's secret records
• Ensure India friendly global anti-secret banking rules
• Appoint a special emissary to Germany & Switzerland.
• Develop a proper Institutional infrastructure to fight the flight-of-capital.
Flight of Capital
(*Due to the prevalent secrecy in protecting ‘dirty’ money by the tax havens, and absence of adequate laws to ensure 100% disclosures. All
figures are believed estimates. As someone has said there is a need to focus on the fact-of-the-loot, rather than on the math-of-the-loot)