Black money compliance window ended 30th Sept with a disclosure of Rs 4,147 crore
What is black money?
Money being the medium of transaction in society is present in apparent and hidden form. The apparent form is legal and open for taxation while the second form is not exposed to taxation and is illegal. The unaccounted money that comes through underhand earning of dishonest people is termed as black money or evaded money.
The way in which our economy has been operating and the avoidance of tax had led to concentration of wealth and this has further led to increase of wealth in the hands of few people. This has encouraged more black money, black marketing and smuggling etc.
Black money can be in various forms like shares, bonds, securities, instruments of other forms, real estate
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Immunities will not be granted and if the value declared on best-estimate basis is found to be more than the final determination, the excess will not be refundable.
Key take aways:
• Those who would fail to declare their overseas assets would be liable to pay tax and penalty of 120 per cent and would also be facing jail term of around ten years. Those who have already been notified or received notices up to June 30, would not be considered to take advantage of the compliance window.
• Indians, against whom information has been received from foreign nations or overseas accounts, will not be eligible for filing declaration under this window.
• The tax and penalties can be paid till December 31. The commissioner of income tax (International Tax)-2, New Delhi, has been designated the task of receiving all such declarations.
• The declarations of foreign assets for which taxes and penalties need to be paid under the Black Money Act, won’t be facing any proceedings under the FEMA (Foreign Exchange Management Act), 1999. Those waiting to dispose of assets declared and would want to bring back the proceeds through banking channel, would be thereby exempted from prosecution under
Moreover, to receive a record of completion from the IRS, the independent preparer must agree to accept the duties and restrictions relating to practice before the IRS in subpart B and section 10.51 of Treasury Department Circular No. 230. Rev. Proc. 2014-42 § 4.05(4). The voluntary program does not bind return preparers to all of Circular 230. Subpart B of Circular 230 describes noncontroversial ethical duties and responsibilities applicable to anyone who represents a taxpayer before the IRS, such as the duty to provide information promptly when requested, the duty not to charge an unconscionable fee, and rules regarding conflicts of interests and solicitation of
—. Spotlight on Foreign Corrupt Practices Act. 14 November 2012. Web. 20 February 2014. .
Terrorist and criminal organization have internal problems that can be exploited by law enforcement and policy makers. Form author Nikos Passas we understand that terrorist organization have a lot of different methods of funding, including crime and charities. According to Passas the best way to combat this is to increase transparency and traceability in economic transactions, which was also concluded by author Jonas R. Want in his article discussing the regulation of Hawala. By doing this globally we can combat the financing of terrorist and criminal groups by having better knowledge of the movement of their money. According to author William Phil’s two thousand and seven peace, following the money is the most powerful tool in combating illegal financial transactions. The argument is supported by an Bichler, Bushes, and Malm’s article that states that understanding the market system in which criminal organizations operate is necessary when identifying the key players and mechanisms used. Overall, strengthening financial transaction transparency will help law enforcement combat both terrorist and criminal organization which will have great affects on both organizations
...hir collected were from people who were working in secret so that they would not have to pay any tax to J.T. However Sudhir innocently shared this information with J.T which caused many of the people to be beaten up for trying to evade taxes.
Congress recognized this new problem that criminals encountered and began to enact money-laundering laws aimed at preventing the criminals from accessing these profits. Congress has created a regulatory system that works to identify the point at which criminals try and invest those profits or funnel them through the financial institution. As the black market becomes more profitable, anti-money laundering laws provide a unique alternative to many of the other laws aimed at preventing and punishing crime. Instead of only convicting the drug dealer who stood on the corner, anti-money laundering laws establish liability for anyone who has knowledge of the illicit origin and proceeds to transact with the drug dealer. They aim to take away any ability to use profits and thus any incentive to get involved in profitabl...
In the modern world today crime is at an all time high. Gangs are now
The Mafia is an Italian secret criminal society. The Mafia, or syndicate, impacts cities all around the world. Most of the effects of the Mafia are negative, but there can be several positive effects on the culture and economy of the cities in which it frequents.
estimated 7 billion dollars earned in shadow market. This money is used for drugs, gangs, mafia,
President’s Commission on Organised Crime 1984, Interim Report to the President and Attorney General, The Cash Connection: Organized Crime, Financial Institutions, and Money Laundering, viewed 28 March 2014, https://www.ncjrs.gov/pdffiles1/Digitization/166517NCJRS.pdf
Money has evolved with the times and is a reflection of the progress of man. Early money was a physical commodity, grain, gold or silver. During the vital stage, more symbolic forms of money such as certificates of deposit, bank notes, checks, letters of credit, bonds and other forms of negotiable securities came into prominence. Social development transformed money into a trust, “In God We Trust' it says on the back of the ten-dollar bill.” (The Ascent of Money, 27)
fined up to 10 per cent of your UK turnover for up to three years.
The tax year is from 1st January to 31st December. There is a self-assessment system, on a previous year basis; a company must submit its tax return six months after their financial year end. Returns must be accompanied by full payment of tax due.
This “black money” along with illegal exports taint local economies and corrodes the financial structure in developing countries where organized crime has strongholds. Developing countries become the targets for such practises due to the ability for organised crime groups to manipulate the system in place to their benefit. A country’s tax system is an important economic feature that has a major impact on organized criminal activities. A financial environment in the country where tax evasion is prevalent is often accompanied by the higher levels of organized crime associated with the nature and scale of money laundering. Organised crime groups take advantage of an already weak system to benefit their own enterprises. Instead of being granted a chance to improve, developing countries’ financial systems are stemmed from achieving success due to the presence of malicious “black money” operations done by crime groups. A great deal of money traverses these illegal systems every year, and it put to use on more illicit trades, operations, etc. Consequently, “according to an estimate by the non-profit Global Financial Integrity group, $1 trillion vanishes from the developing world’s economies every year. That is money that is badly needed for development” (Indrawati). By taking the money from countries where the regulations are not as strict in turn squanders any chance that
The majority of the South African people are unemployed or else the breadwinner of the family looses the job or dies. In that situation the family has nobody to provide them with the basic needs of life. The children have no money to go to school and that alone increases the rate of poverty as it is known to everybody that if u is uneducated, you have no good chances of getting a well paying job that will sustain you for the rest of your life. In those situations people turn to crime. They believe that it is the only way that will get food on their table, clothes on their back and roofs over their heads. They also believe that the poor must get their needs from the rich, in that way they target the rich people. The increase in the rate of poverty means the increase in the rate of crime.
Black markets hurt governments, legal sellers, and buyers. One of the most common causes and also one of the most hurt is the taxation system of the country that the black market operated in. Black markets are non-taxable and thus the government loses valuable taxes from the illegal gains. Black markets “account for a significant portion of GDP (gross domestic product) in many countries” and it is estimated that the size of the United States’ black markets to be almost 8-10% of the gross domestic product of the United States. Not only do black markets damage the economic stability of the countries they operate, they also hurt the legally acquired economic gains of competing marketplace sellers. Legal sellers cannot compete with the prices or products of black markets and thus they lose gains that could be made without the o...