What is Black Money? Income. that is not reported to the government for tax purposes. as by a means that involves tax evasion . as from illegal activities. OR Any money that a person or organization acquires illegally.

Causes of Black Money ‡ High rates of taxation ‡ Corrupt business practices ‡ Political and bureaucratic corruption ‡ Prohibited trades like liquor and drugs ‡ Manipulation of public expenditure ‡ Inadequacy of power to the tax authority ‡ Ineffective enforcement of the tax law .

‡ They have zero or very low income tax. etc that act as places of registration for overseas nonresident companies. ‡ They ask no questions on the origins of the money coming into their banks. ‡ They have no contribution to the world. . Bermuda. except as points on the world-map where µdirty¶ money is kept safely. ‡ They keep all banking records secret and cooperate very little with other countries.What are Tax Havens? ‡ Small countries like Switzerland. Angola.

5 crore-crore) ‡ Annually $1 trillion (Rs 50 lac-crore) being added ‡ 50% of this money belongs to the developing countries like India ‡ 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) .5 trillion (Rs 7.Money Involved ‡ Total dirty money in tax-havens = $11.

‡ Switzerland is not cooperating fully.´ [NDTV Profit 15-03-2008] ‡ Switzerland has 1/3rd global private funds. ‡ Switzerland must follow Germany¶s model which is willing to give the details of all Indian names in the LGT Bank secret records. ³Switzerland was accused of giving shelter to black money and there has been a lot of inflow of such wealth from India«. It is reluctant to give full access to its banking records.Role of Switzerland ‡ Swiss ambassador. .

but public criticism forced UK PM Gordon Brown to change tracks & issue a statement.G20 Stance ‡ At the London G20 summit on 2 April 2009. The era of banking secrecy is over. ³This is the start of the end. G20 countries agreed to define a blacklist for tax havens.´ . if they don¶t co-operate. ‡ Germany & France have threatened tax-havens like Switzerland with BLACKLISTING them. ‡ Switzerland is under serious pressure to risk black listing or cooperating. ‡ At first UK did not support this.

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