The article analyzes India's Black Money Act, which came into effect on July 1, 2015. Some key points:
- The Act taxes undisclosed foreign assets and income of resident Indian citizens at 30% and also imposes severe criminal penalties for tax evasion.
- It allows for a one-time compliance window until December 2015 for declaring foreign assets with a penalty of paying the tax due plus a 100% penalty.
- Significantly, the Act defines willful attempt to evade tax as a "predicate offense" under India's anti-money laundering law, allowing tax authorities and the Enforcement Directorate to investigate cases jointly.
- This is aimed at enabling India to seek more cooperation from
This document provides an overview and summary of the Prevention of Corruption Act, 1988 in India. It discusses how the Act aims to curb corruption among public servants by defining criminal offenses and associated penalties. Key points include:
- The Act consolidated previous anti-corruption laws and expanded the definition of a "public servant." It created special courts to try corruption cases.
- Offenses under the Act include a public servant accepting bribes, obtaining pecuniary advantages through abuse of power, or possessing disproportionate assets. Penalties include minimum six month imprisonment.
- The Act also includes presumptions of guilt that shift the burden of proof to the accused public servant in some cases. Investigation of offenses can be done
The BMR View UnFINA & Money Laundering In IndiaAbhishek Bali
While a lot has been said and written about Undisclosed Foreign Income and Assets (Imposition of Tax) Bill (UnFINA) over the last few days, most of this is based on the bill’s sections, directives and penalties, as cleared by the Cabinet. The conversations around UnFINA have been relegated to the number of years of imprisonment, fines and percentage of penalties. In our view this has led to a case of missing the forest for the trees. I look forward to your inputs on the proposed law and its effects on the general politico-economic environment in India
The document discusses various views presented by Team Anna and the Government on the provisions of the Lokpal Bill. Key points of debate include whether the Prime Minister and other public servants should come under the Lokpal's jurisdiction, the selection process of Lokpal members, the powers and accountability of the Lokpal, and the punishment for corruption. Both sides raise concerns about maintaining the independence of institutions and the Lokpal not becoming an overreaching authority.
This document discusses factors that contribute to tax evasion and the differences between tax evasion and avoidance. It identifies high tax burdens, low incomes, weak government systems like corruption, and underground markets as factors that increase tax evasion. Tax morale and loopholes in tax deductions can also enable evasion. Tax avoidance uses legal methods to reduce taxes, while evasion intentionally violates tax laws. Penalties for evasion include fines, imprisonment, and additional taxes owed depending on the specific offense of incorrect returns, willful evasion, or understatement of taxes. Case studies are also referenced to illustrate how these laws have been applied.
The document summarizes key aspects of the Israeli tax system, including:
- Israeli residents are taxed on worldwide income, while foreign residents are taxed only on Israeli-source income. Tax treaties may reduce double taxation.
- Individual tax residency is based on a facts-and-circumstances "center of life" test, with presumptions around number of days present in Israel. Recent court cases provide further guidance.
- Corporate tax rate is 23%, with lower rates on some types of investment income. Controlled foreign corporations may be taxed to prevent deferral or avoidance of Israeli taxes on passive income.
Distrain under PITA - An Analysis and Evaluation of Principles & Practice - B...Olumide, Bidemi Daniel
This document provides an analysis and evaluation of distrain provisions under the Personal Income Tax Act (PITA) in Nigeria. It examines amendments made in 2011 regarding requirements for demand notices and authorization of distrain by a High Court judge. The document is divided into two parts: 1) an analysis of distrain provisions under PITA, and 2) practical considerations for tax collectors using distrain. Key points analyzed include definitions of taxable persons, requirements for assessment and demand notices, and procedures for seizure and sale of assets. The aim is to provide knowledge of the distrain process and its application for successful tax collection.
A non-filer is someone who does not file a tax return by the required due date. They may be subject to penalties such as interest and late fees. The Federal Board of Revenue in Pakistan specified that non-filers will have their withholding taxes doubled under a new law. Withholding tax refers to a tax deducted from income payments by the payer and paid to the government on behalf of the recipient. It may be treated as a partial payment of the recipient's total tax liability.
This document provides an overview and summary of the Prevention of Corruption Act, 1988 in India. It discusses how the Act aims to curb corruption among public servants by defining criminal offenses and associated penalties. Key points include:
- The Act consolidated previous anti-corruption laws and expanded the definition of a "public servant." It created special courts to try corruption cases.
- Offenses under the Act include a public servant accepting bribes, obtaining pecuniary advantages through abuse of power, or possessing disproportionate assets. Penalties include minimum six month imprisonment.
- The Act also includes presumptions of guilt that shift the burden of proof to the accused public servant in some cases. Investigation of offenses can be done
The BMR View UnFINA & Money Laundering In IndiaAbhishek Bali
While a lot has been said and written about Undisclosed Foreign Income and Assets (Imposition of Tax) Bill (UnFINA) over the last few days, most of this is based on the bill’s sections, directives and penalties, as cleared by the Cabinet. The conversations around UnFINA have been relegated to the number of years of imprisonment, fines and percentage of penalties. In our view this has led to a case of missing the forest for the trees. I look forward to your inputs on the proposed law and its effects on the general politico-economic environment in India
The document discusses various views presented by Team Anna and the Government on the provisions of the Lokpal Bill. Key points of debate include whether the Prime Minister and other public servants should come under the Lokpal's jurisdiction, the selection process of Lokpal members, the powers and accountability of the Lokpal, and the punishment for corruption. Both sides raise concerns about maintaining the independence of institutions and the Lokpal not becoming an overreaching authority.
This document discusses factors that contribute to tax evasion and the differences between tax evasion and avoidance. It identifies high tax burdens, low incomes, weak government systems like corruption, and underground markets as factors that increase tax evasion. Tax morale and loopholes in tax deductions can also enable evasion. Tax avoidance uses legal methods to reduce taxes, while evasion intentionally violates tax laws. Penalties for evasion include fines, imprisonment, and additional taxes owed depending on the specific offense of incorrect returns, willful evasion, or understatement of taxes. Case studies are also referenced to illustrate how these laws have been applied.
The document summarizes key aspects of the Israeli tax system, including:
- Israeli residents are taxed on worldwide income, while foreign residents are taxed only on Israeli-source income. Tax treaties may reduce double taxation.
- Individual tax residency is based on a facts-and-circumstances "center of life" test, with presumptions around number of days present in Israel. Recent court cases provide further guidance.
- Corporate tax rate is 23%, with lower rates on some types of investment income. Controlled foreign corporations may be taxed to prevent deferral or avoidance of Israeli taxes on passive income.
Distrain under PITA - An Analysis and Evaluation of Principles & Practice - B...Olumide, Bidemi Daniel
This document provides an analysis and evaluation of distrain provisions under the Personal Income Tax Act (PITA) in Nigeria. It examines amendments made in 2011 regarding requirements for demand notices and authorization of distrain by a High Court judge. The document is divided into two parts: 1) an analysis of distrain provisions under PITA, and 2) practical considerations for tax collectors using distrain. Key points analyzed include definitions of taxable persons, requirements for assessment and demand notices, and procedures for seizure and sale of assets. The aim is to provide knowledge of the distrain process and its application for successful tax collection.
A non-filer is someone who does not file a tax return by the required due date. They may be subject to penalties such as interest and late fees. The Federal Board of Revenue in Pakistan specified that non-filers will have their withholding taxes doubled under a new law. Withholding tax refers to a tax deducted from income payments by the payer and paid to the government on behalf of the recipient. It may be treated as a partial payment of the recipient's total tax liability.
This document provides an overview of income tax in India. It begins with a brief history of income tax, explaining its origins in ancient India and its modern introduction in 1860. It then covers key topics like types of income, tax rates, exemptions, deductions, filing requirements and deadlines. The purpose of the tax is to generate revenue for the government to fund public services like healthcare, education, infrastructure and security. Filing taxes correctly and on time is important for both citizens and the systems that rely on tax revenue.
This document outlines various national taxes imposed in the Philippines, including income tax, estate tax, value-added tax, excise taxes, customs duties, and other taxes. It provides details on income tax rates and calculations, defining terms like gross income, taxable income, deductions, exemptions, and who is required to file an income tax return.
The document discusses various aspects of taxation in India including tax evasion, tax avoidance, and the role of tax administration.
It defines tax evasion as illegally reducing one's tax burden by underreporting income or overstating deductions/expenses. Tax avoidance uses legal tax deductions and exemptions to minimize tax liability. Penalties for tax evasion range from 100-300% of evaded taxes.
The document also summarizes key provisions of the Income Tax Act related to deductions that can help taxpayers lower their taxable income such as sections 80C, 80D, and double taxation avoidance agreements. It notes direct tax collections have increased after demonetization as the number of taxpayers has risen from 3 crore
The document summarizes key aspects of the Prevention of Money Laundering Act, 2002 in India. It covers:
1) Key definitions like proceeds of crime, property, reporting entity. It defines money laundering and its punishment.
2) Provisions for attachment of property involved in money laundering, its adjudication and confiscation by the authorities.
3) Obligations of reporting entities like banks to verify identities, maintain records and furnish information to authorities.
4) Powers of authorities to summon entities, access information and impose fines. It aims to prevent money laundering and confiscate illegally obtained property.
This document discusses transfer pricing regulations in Nigeria. It defines transfer pricing as how related parties price cross-border transactions between entities. It outlines Nigeria's objectives for its transfer pricing regulations, which include ensuring a fair share of profits and preventing profit shifting. The regulations provide guidance on comparability analysis, documentation requirements, advance pricing agreements, dispute resolution procedures, and penalties for noncompliance.
I have presented this slide before my course teacher. Now I am publishing this slide for all Students in Bangladesh which may help them for their study.
This document discusses tax evasion and avoidance. It defines tax as a financial charge imposed by governments to fund public expenditures. Direct taxes are levied on personal income, while indirect taxes are levied on goods and services. Tax evasion is illegally not paying taxes when they are due, while tax avoidance uses legal loopholes to reduce taxes owed. Common methods of evasion include failing to pay taxes, smuggling, and falsifying financial statements. Tax evasion harms economies by reducing government revenues. To reduce evasion, governments can simplify tax laws, increase awareness, and strengthen penalties for noncompliance.
This document provides an overview of different types of taxes in India including direct taxes like income tax, wealth tax, and property tax as well as indirect taxes like sales tax, excise duty, customs duty, and service tax. It discusses income from different sources like salary, house property, business/profession, and capital gains. It also covers topics like PAN requirements, tax planning and precautions for senior citizens and NRIs. Common tax planning tips are provided along with information about the Annual Information Report submitted by specified entities on high value transactions.
This document outlines proposed articles of law and reforms for the sovereign country of Ukraine. It establishes a democratic government with elected representatives and guarantees freedoms and rights to its citizens. It divides the country into nine districts each governed by a governor and two lieutenant governors. It establishes provisions for education, healthcare, social services, military benefits, protests, criminal justice processes, property rights, and decentralizing the government to prevent corruption. It also outlines the roles and responsibilities of federal, district, and local governments and establishes provisions for funding, emergency response, business investment, salaries, and taxes.
- The document outlines general principles of income taxation in the Philippines, including that citizens are taxed on worldwide income while non-citizens are only taxed on domestic income.
- It provides income tax rates for individual citizens and resident aliens that range from 5% to 34% depending on taxable income amount. Married couples file separately.
- Certain types of passive income like interest, royalties, and dividends are subject to final taxes ranging from 6% to 20% instead of the regular income tax rates. Capital gains are also taxed differently depending on the asset type.
The prevention of money laundering act, 2002 (2)Himanshu Goyal
The document summarizes key aspects of India's Prevention of Money Laundering Act of 2002. It defines money laundering and outlines the three main stages: placement, layering, and integration. It describes various criminal activities that can generate illicit funds and popular methods used to launder money. The summary also discusses important sections of the act related to definitions, objectives to prevent money laundering, punishment for offenses, attachment and confiscation of property, and search and seizure powers of authorities. The overall purpose of the act is to combat money laundering in India.
Tax fraud involves deliberately underpaying taxes owed through dishonest means such as underreporting income, overstating deductions, or providing false information. Common methods of tax fraud include suppressing personal expenses, deliberately omitting income from business transactions, making false entries in books to hide unreported income or inflate expenses, and concealing receipt of income by not recording transactions. Large corporations may also commit tax fraud through practices like improper transfer pricing or window dressing financial reports. Individual tax fraud usually stems from rationalizations of high taxes and opportunities created by complex tax systems.
Unconstitutional Siphoning of Government Funds in IndiaShantanu Basu
Updated version of a presentation that was scheduled to have been made on Feb 27, 2015 but was deliberately sabotaged by India's CAG in tandem with the Congress Govt. of Assam so that critical oversight failures would never come to light. Documents the methodical siphoning of govt. funds to unknown individuals and groups in a sensitive border state in NE India. There are innumerable questions about the facilitative roles, both as acts of commission and omission, played by government and statutory oversight agencies that await answers.
Traffic offenses in Singapore are presently administered by the Road Traffic Act. Common driving offenses and their punishment in Singapore are as follows
The document provides an overview of the Prevention of Money Laundering Act (PMLA) 2002 in India. It discusses the objectives of PMLA, which are to prevent and control money laundering, confiscate illegally obtained property, and deal with money laundering related issues. It also defines key terms like money laundering and proceeds of crime. The document outlines the process of money laundering and various methods used for it like smurfing. It discusses penalties under FEMA and search/seizure powers under PMLA.
This document provides summaries of 9 tax case digests from Philippine tax law. The summaries highlight the key facts, issues and rulings of each case. Some common themes that emerge are:
1) Taxes are considered the lifeblood of the government and exemptions are strictly construed.
2) Government errors by tax officials do not prevent tax collection, as the government cannot be estopped in tax matters.
3) Tax assessments are presumed correct and the taxpayer bears the burden of proving otherwise.
4) Equitable arguments cannot override clear tax statutes, and tax refunds must be based on the law rather than notions of fairness.
This document provides an overview of taxation in Pakistan. It defines taxation as the compulsory levies imposed by governments on individuals and entities as a source of government revenue to fund public expenditures. It notes that failure to pay taxes is punishable by law. The document then discusses how governments use taxes for development and control through various exemptions, credits, and duties. It outlines the main types of direct and indirect taxes in Pakistan including income tax, capital value tax, value added tax, sales tax, and excise. The remainder of the document provides details on key concepts related to taxation in Pakistan such as the definition of a person according to income tax ordinance, heads of income, taxable income calculation, tax years, and additional reading
The document discusses tax evasion in the Philippines. It defines tax evasion as a criminal act of deliberately failing to pay tax liability. People who commit tax evasion face criminal charges and penalties such as jail time and fines. The document then discusses various tax revenues in the Philippines including income tax, excise tax, franchise taxes, and import duties. It provides examples of high-profile tax evasion cases in the country such as those against Dunkin Donuts, Rappler, former Supreme Court Chief Justice Renato Corona, and boxer Manny Pacquiao.
The government of Pakistan has announced another tax amnesty package that allows citizens to declare previously undeclared local incomes and foreign currency holdings at reduced penalties. While amnesties may attract some funds, they provide immunity and weaken accountability laws. Past amnesties yielded minimal new tax revenues. For real reform, Pakistan needs to strengthen tax administration and audit functions, and fully utilize agreements with other countries to repatriate illicit wealth offshore.
El documento habla sobre el proceso administrativo de una empresa de construcción, el cual consta de 4 etapas: planificación, organización, ejecución y control.
This document provides an overview of income tax in India. It begins with a brief history of income tax, explaining its origins in ancient India and its modern introduction in 1860. It then covers key topics like types of income, tax rates, exemptions, deductions, filing requirements and deadlines. The purpose of the tax is to generate revenue for the government to fund public services like healthcare, education, infrastructure and security. Filing taxes correctly and on time is important for both citizens and the systems that rely on tax revenue.
This document outlines various national taxes imposed in the Philippines, including income tax, estate tax, value-added tax, excise taxes, customs duties, and other taxes. It provides details on income tax rates and calculations, defining terms like gross income, taxable income, deductions, exemptions, and who is required to file an income tax return.
The document discusses various aspects of taxation in India including tax evasion, tax avoidance, and the role of tax administration.
It defines tax evasion as illegally reducing one's tax burden by underreporting income or overstating deductions/expenses. Tax avoidance uses legal tax deductions and exemptions to minimize tax liability. Penalties for tax evasion range from 100-300% of evaded taxes.
The document also summarizes key provisions of the Income Tax Act related to deductions that can help taxpayers lower their taxable income such as sections 80C, 80D, and double taxation avoidance agreements. It notes direct tax collections have increased after demonetization as the number of taxpayers has risen from 3 crore
The document summarizes key aspects of the Prevention of Money Laundering Act, 2002 in India. It covers:
1) Key definitions like proceeds of crime, property, reporting entity. It defines money laundering and its punishment.
2) Provisions for attachment of property involved in money laundering, its adjudication and confiscation by the authorities.
3) Obligations of reporting entities like banks to verify identities, maintain records and furnish information to authorities.
4) Powers of authorities to summon entities, access information and impose fines. It aims to prevent money laundering and confiscate illegally obtained property.
This document discusses transfer pricing regulations in Nigeria. It defines transfer pricing as how related parties price cross-border transactions between entities. It outlines Nigeria's objectives for its transfer pricing regulations, which include ensuring a fair share of profits and preventing profit shifting. The regulations provide guidance on comparability analysis, documentation requirements, advance pricing agreements, dispute resolution procedures, and penalties for noncompliance.
I have presented this slide before my course teacher. Now I am publishing this slide for all Students in Bangladesh which may help them for their study.
This document discusses tax evasion and avoidance. It defines tax as a financial charge imposed by governments to fund public expenditures. Direct taxes are levied on personal income, while indirect taxes are levied on goods and services. Tax evasion is illegally not paying taxes when they are due, while tax avoidance uses legal loopholes to reduce taxes owed. Common methods of evasion include failing to pay taxes, smuggling, and falsifying financial statements. Tax evasion harms economies by reducing government revenues. To reduce evasion, governments can simplify tax laws, increase awareness, and strengthen penalties for noncompliance.
This document provides an overview of different types of taxes in India including direct taxes like income tax, wealth tax, and property tax as well as indirect taxes like sales tax, excise duty, customs duty, and service tax. It discusses income from different sources like salary, house property, business/profession, and capital gains. It also covers topics like PAN requirements, tax planning and precautions for senior citizens and NRIs. Common tax planning tips are provided along with information about the Annual Information Report submitted by specified entities on high value transactions.
This document outlines proposed articles of law and reforms for the sovereign country of Ukraine. It establishes a democratic government with elected representatives and guarantees freedoms and rights to its citizens. It divides the country into nine districts each governed by a governor and two lieutenant governors. It establishes provisions for education, healthcare, social services, military benefits, protests, criminal justice processes, property rights, and decentralizing the government to prevent corruption. It also outlines the roles and responsibilities of federal, district, and local governments and establishes provisions for funding, emergency response, business investment, salaries, and taxes.
- The document outlines general principles of income taxation in the Philippines, including that citizens are taxed on worldwide income while non-citizens are only taxed on domestic income.
- It provides income tax rates for individual citizens and resident aliens that range from 5% to 34% depending on taxable income amount. Married couples file separately.
- Certain types of passive income like interest, royalties, and dividends are subject to final taxes ranging from 6% to 20% instead of the regular income tax rates. Capital gains are also taxed differently depending on the asset type.
The prevention of money laundering act, 2002 (2)Himanshu Goyal
The document summarizes key aspects of India's Prevention of Money Laundering Act of 2002. It defines money laundering and outlines the three main stages: placement, layering, and integration. It describes various criminal activities that can generate illicit funds and popular methods used to launder money. The summary also discusses important sections of the act related to definitions, objectives to prevent money laundering, punishment for offenses, attachment and confiscation of property, and search and seizure powers of authorities. The overall purpose of the act is to combat money laundering in India.
Tax fraud involves deliberately underpaying taxes owed through dishonest means such as underreporting income, overstating deductions, or providing false information. Common methods of tax fraud include suppressing personal expenses, deliberately omitting income from business transactions, making false entries in books to hide unreported income or inflate expenses, and concealing receipt of income by not recording transactions. Large corporations may also commit tax fraud through practices like improper transfer pricing or window dressing financial reports. Individual tax fraud usually stems from rationalizations of high taxes and opportunities created by complex tax systems.
Unconstitutional Siphoning of Government Funds in IndiaShantanu Basu
Updated version of a presentation that was scheduled to have been made on Feb 27, 2015 but was deliberately sabotaged by India's CAG in tandem with the Congress Govt. of Assam so that critical oversight failures would never come to light. Documents the methodical siphoning of govt. funds to unknown individuals and groups in a sensitive border state in NE India. There are innumerable questions about the facilitative roles, both as acts of commission and omission, played by government and statutory oversight agencies that await answers.
Traffic offenses in Singapore are presently administered by the Road Traffic Act. Common driving offenses and their punishment in Singapore are as follows
The document provides an overview of the Prevention of Money Laundering Act (PMLA) 2002 in India. It discusses the objectives of PMLA, which are to prevent and control money laundering, confiscate illegally obtained property, and deal with money laundering related issues. It also defines key terms like money laundering and proceeds of crime. The document outlines the process of money laundering and various methods used for it like smurfing. It discusses penalties under FEMA and search/seizure powers under PMLA.
This document provides summaries of 9 tax case digests from Philippine tax law. The summaries highlight the key facts, issues and rulings of each case. Some common themes that emerge are:
1) Taxes are considered the lifeblood of the government and exemptions are strictly construed.
2) Government errors by tax officials do not prevent tax collection, as the government cannot be estopped in tax matters.
3) Tax assessments are presumed correct and the taxpayer bears the burden of proving otherwise.
4) Equitable arguments cannot override clear tax statutes, and tax refunds must be based on the law rather than notions of fairness.
This document provides an overview of taxation in Pakistan. It defines taxation as the compulsory levies imposed by governments on individuals and entities as a source of government revenue to fund public expenditures. It notes that failure to pay taxes is punishable by law. The document then discusses how governments use taxes for development and control through various exemptions, credits, and duties. It outlines the main types of direct and indirect taxes in Pakistan including income tax, capital value tax, value added tax, sales tax, and excise. The remainder of the document provides details on key concepts related to taxation in Pakistan such as the definition of a person according to income tax ordinance, heads of income, taxable income calculation, tax years, and additional reading
The document discusses tax evasion in the Philippines. It defines tax evasion as a criminal act of deliberately failing to pay tax liability. People who commit tax evasion face criminal charges and penalties such as jail time and fines. The document then discusses various tax revenues in the Philippines including income tax, excise tax, franchise taxes, and import duties. It provides examples of high-profile tax evasion cases in the country such as those against Dunkin Donuts, Rappler, former Supreme Court Chief Justice Renato Corona, and boxer Manny Pacquiao.
The government of Pakistan has announced another tax amnesty package that allows citizens to declare previously undeclared local incomes and foreign currency holdings at reduced penalties. While amnesties may attract some funds, they provide immunity and weaken accountability laws. Past amnesties yielded minimal new tax revenues. For real reform, Pakistan needs to strengthen tax administration and audit functions, and fully utilize agreements with other countries to repatriate illicit wealth offshore.
El documento habla sobre el proceso administrativo de una empresa de construcción, el cual consta de 4 etapas: planificación, organización, ejecución y control.
12 ноября прошел бесплатный вебинар: "Правильное соседство: как использовать продающие тексты и полезный контент для продвижения бизнеса". Спикер: Алина Самульская-Холина - копирайтер, контент-маркетолог, автор блога «Лаборатория копирайтера».
Subresource Integrity (SRI) allows websites to specify a cryptographic hash for external scripts and stylesheets to verify their integrity before loading. A study found 88% of top websites include external JavaScript libraries. SRI helps prevent attacks from compromised CDNs by only loading resources that match the expected hash value. SRI also uses the crossorigin attribute to implement Cross-Origin Resource Sharing (CORS) and prevent data leakage when checking external resources. CORS headers must be present for SRI integrity checks to prevent loading alternative scripts. SRI provides more control over included external content and is supported by libraries like Ember.js.
Enterprise Applications, Analytics and Knowledge Management Trends 2013Einat Shimoni
The document discusses trends in open source and cloud adoption. It notes that open source adoption is growing worldwide but remains low in Israel. Open source provides quality and cost benefits but commercial support is still preferred over community support. Cloud adoption is also increasing, with many Israeli organizations planning to use software-as-a-service. Keeping up with technology trends is a major advantage of open source and cloud solutions.
The document discusses big data analytics and tools. It introduces the concept of an "Internet of Corporate Things" and expanding analytics beyond just corporate data. It emphasizes that new tools and approaches are needed to take advantage of big data. The document provides guidance on starting a big data analytics initiative, including choosing a pilot use case, designing a new data architecture with a data lake, building an analytics center of excellence, and training analysts. It also summarizes various big data analytics tools for storage, delivery, and analyzing large datasets.
GraphConnect Europe 2016 - Navigating All the Knowledge - James WeaverNeo4j
This document discusses the technical architecture of ConceptMap.io, a tool for navigating Wikipedia articles and their relationships via Wikidata. It uses a Spring Boot backend with a Neo4j graph database to retrieve and link articles. Users can search for articles, pin them to concept maps, and navigate relationships to explore topics. The system is designed to facilitate learning, teaching and research through visualizing semantic connections in Wikipedia.
GraphConnect Europe 2016 - Enterprise Data Integration with a new JDBC Driver...Neo4j
This document outlines a presentation about new integrations for Neo4j 3.0, including a Neo4j-Couchbase connector and JDBC driver. The presentation agenda is introduced and the speaker welcomes the audience. Details are then provided about the bi-directional Couchbase connector and how it can convert JSON documents to graph representations. Components of the connector like the Couchbase mutation listener and Neo4j JSON loader are described at a high level. Lastly, the new JDBC driver for Neo4j 3.0 is briefly mentioned.
Ian Robinson, Engineer at Neo4j, talks about how you productionize your Neo4j-based application. In this talk from GraphConnect San Francisco 2015, he looks at some of the most important considerations around designing, building and operating a Neo4j app.
Topics include:
* Where Neo4j fits in your application architecture, in both its embedded and server modes
* How to configure its clustering for high availability and high read throughput
* Backup strategies
* The new monitoring capabilities in Neo4j 2.3
You have developed your application and are now facing the biggest challenge known to mankind: How to get and engage users?
This presentation will give an overview of various actionable growth hacking techniques based on our observations and experiences with mobile apps. Listen to us and go out to scale your app from zero to hero!
Topics covered: PlayStore Optimization, Social Media, Invitation and Referral Systems, Event and E-Mail Marketing, Analytics
The document discusses gaps in college preparation for African American students through the high school educational experience. It finds that African American students are far less likely to be ready for college, especially those attending high-poverty schools. This is due to deficiencies and disparities in school systems, as high-minority schools provide inadequate courses, resources, and supports compared to low-minority schools. Specifically, there are deep disparities between school types in access to rigorous college preparatory courses, experienced teachers, and school counselors, which are critical for college readiness. Understanding these factors is important for developing policies and practices to improve preparation for all students.
This document provides a curriculum vitae for Dr. David A. Dowe, including his education, postgraduate training, faculty appointments, hospital appointments, publications, awards, and teaching experience. It details that he received his medical degree and completed his residency at SUNY Health Center, has been a practicing radiologist for over 25 years, and is currently the medical director of the coronary CTA program at Atlantic Medical Imaging in New Jersey where he has given over 150 national and international lectures on coronary CTA.
While a lot has been said and written about The Black Money Bill (2015) over the last few months, most of this is based on the bill’s sections, directives and penalties, as cleared by the Cabinet. The conversations around this bill have been relegated to the number of years of imprisonment, fines and percentage of penalties. In our view this has led to a case of missing the forest for the trees.
Prime Minister Modi announced that Rs. 6,500 crore of undisclosed income had been declared under the Black Money Act as part of a one-time compliance window. This allows those with undisclosed foreign assets to declare them by September 30, 2015 by paying a tax and penalty totaling 60% of the assets' fair market value to receive amnesty. The Act aims to curb black money and targets undisclosed foreign income and assets not previously declared in tax returns, imposing a 30% tax on such amounts. It provides an opportunity for tax evaders to come clean before more stringent provisions take effect.
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 - An...D Murali ☆
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 aims to tax undisclosed foreign income and assets and prosecute related violations. The bill applies to Indian residents and companies holding foreign assets or income not previously disclosed. Undisclosed foreign assets and income will be taxed at 30% plus penalties, with imprisonment of up to 10 years for willful evasion. The bill provides a one-time compliance window to disclose foreign assets and income in tax returns for assessment year 2016-17 at a tax rate of 30% plus penalty, without reopening past assessments. However, disclosures may still lead to proceedings under other laws and do not conflict with double taxation avoidance agreements. The bill grants tax authorities significant
Tax Crimes Prosecution - Principles, Procedures & Practical Insights into Cou...Olumide, Bidemi Daniel
The document provides an overview of tax crimes prosecution principles and procedures in Nigeria. It discusses key definitions, including what constitutes a crime. It also lists 80 different tax-related acts and omissions that Nigerian law considers offenses. For each offense, it provides the punishment provision and a brief remark on the main ingredients that must be proven. The overview is intended to help participants better understand the enforcement of criminal aspects of Nigeria's tax laws.
Black money and imposition of tax act, 2015Mehul Shah
The document summarizes key aspects of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. It outlines a compliance window mechanism that allows declaration of undisclosed foreign assets within 3 months to pay tax at 30% of the value, plus a penalty of 100% of the tax amount. Rules for valuation of various assets like bullion, property, and shares are also described. The overview notes that those with undisclosed foreign bank accounts must now pay tax on deposits in the account since it was opened.
Undisclosed foreign income and assets(imposition of taxes) bill, 2015Abhishek Murali
A comprehensive presentation on the proposed Undsclosed Foreign Income and Assets(Imposition of taxes) Bill, 2015. The move by the government to tackle black money stashed abroad to bring back to India. Including the Jurisprudence of the Bill, scope, coverage, definitions, explanation, penalties and prosecution and impact. Guidance what to do if you have any foreign land, house or property
The Collection of Statistics Act, 2008 is the primary legislation in India for collecting economic, social, demographic, scientific, and environmental data. It empowers the government to direct the collection of statistics on various topics and appoint statistics officers. Statistics authorities can require owners of businesses to provide information and have access to relevant records. Collected information is restricted from publication to protect confidentiality. The Act establishes penalties for non-compliance and improper disclosure of information. It aims to enhance the scope of data collection compared to the previous statistics act.
The UK Bribery Act 2010 introduces several new bribery offenses that expand the UK's jurisdiction over bribery. It prohibits bribery of foreign officials, private individuals, and failure by companies to prevent bribery. It covers both UK and non-UK companies that do business in the UK. Penalties are severe, including up to 10 years in prison and unlimited fines. Companies must implement adequate procedures to prevent bribery by persons associated with them to use as a defense. UK enforcement authorities plan to aggressively enforce the new law.
The UK Bribery Act 2010 introduces several new bribery offenses that expand the UK's jurisdiction over bribery. It prohibits bribery of foreign officials, private individuals, and failure by companies to prevent bribery. It covers both UK and non-UK companies that do business in the UK. Penalties are severe, including up to 10 years in prison and unlimited fines. Guidance on an "adequate procedures" defense for companies is forthcoming but compliance is critical to avoid prosecution under the Act's broad reach.
Heads of income in India (salaries,house property, business and profession)afukhan
This document provides an overview of key concepts in Indian income tax law, including definitions of assessment year, previous year, person, assessee, assessment, income, and heads of income. It explains that income tax is charged annually on a person's total income from all sources in the previous year, at rates prescribed in the relevant Finance Act. Income is classified under five heads - salaries, house property, business/profession, capital gains, and other sources - and tax is computed on the aggregate income under all heads together, though some items receive special tax treatment. A person has a common residential status for all heads of income.
TransPrice Times - Special Edition - Decoding the Black Money ActAkshay KENKRE
Dear Readers,
To check the black money menace, the Government of India recently introduced ‘The Black Money Act’, the provisions of which are applicable from 1 July 2015.
The Act provides for a short window till 30 September 2015 for voluntary disclosures, post which draconian penalties would be applicable on non-disclosures of assets held in foreign land.
We are pleased to present TransPrice Special Edition titled ‘Decoding the Black Money Act’ which gives you a quick snapshot of the various provisions of the Act. This edition will enable you to understand various compliances and penalties for varied situations in which the assets were acquired outside India.
In case you need any clarifications, please feel free to get in touch.
Trust you will find it useful.
Happy reading !
The summary is as follows:
1. The U.K. Bribery Act of 2010 aims to overhaul the U.K.'s bribery laws and go beyond the U.S. Foreign Corrupt Practices Act in several respects, such as prohibiting both commercial and public bribery.
2. The Bribery Act imposes strict liability on corporations for failing to prevent bribery by persons associated with the corporation, unless the corporation can prove it had adequate procedures in place to prevent such bribery.
3. Key differences between the FCPA and the Bribery Act include: the Bribery Act prohibits facilitation payments, imposes liability on both parties
Ukraine_Criminal Liability for Entities...Hedge Square
This document summarizes Ukraine's new law on criminal liability for legal entities. The law aims to curb corruption by holding companies criminally liable for illegal acts committed on their behalf, such as money laundering, terrorism financing, and bribery. It establishes fines and property seizure as potential penalties. However, the law may negatively impact economic growth by creating restrictions on business activities and requiring other legal amendments.
Spanish Law 7/2012 introduced new reporting obligations for assets and rights located abroad. Taxpayers must disclose on a new Tax Form 720 by April 30, 2013 accounts, securities, insurance policies, real estate, and other assets located abroad over €50,000. Failure to comply exposes taxpayers to fines up to €10,000 and treats undisclosed assets as unjustified capital gains or income from the earliest open tax period. This special tax alert discusses the new reporting rules and consequences of noncompliance.
The document summarizes the evolution of anti-corruption laws in India. It discusses how the Indian Penal Code of 1862 was supplemented by the Prevention of Corruption Act of 1947 to define criminal misconduct. The PC Act was further expanded in 1988 and recently amended in 2018. The key amendments in 2018 include narrowing the definition of criminal misconduct, introducing time limits for trial completion, and provisions targeting bribery by commercial organizations.
The document discusses clarifications provided around India's Black Money Act through a set of Frequently Asked Questions. The Act provides a one-time window for those with undisclosed foreign assets to declare them by paying 60% tax and penalty to avoid prosecution. Only immunity from offenses under Income Tax, Wealth Tax, FEMA, Companies Act, and Customs Act is provided. Declarations do not provide immunity from other Acts like Wildlife Protection Act if the assets were acquired illegally. Immunity is also not provided under the Prevention of Money Laundering Act as that offense requires an underlying scheduled offense to have occurred.
The document discusses clarifications provided around India's Black Money Act through a set of Frequently Asked Questions. The Act provides a one-time window for those with undisclosed foreign assets to declare them by paying 60% tax and penalty to avoid prosecution under the Act. However, immunity only applies to 5 specific Acts and not others. While firms and companies can declare undisclosed foreign assets, immunity from prosecution is only granted to directors for offenses under the 5 Acts.
The document summarizes the key aspects of the UK Bribery Act of 2010, which introduced stricter laws against bribery. It outlines the four main offences under the Act: 1) offering bribes, 2) accepting bribes, 3) bribing foreign officials, and 4) failure of companies to prevent bribery. It also discusses the penalties for violating these offences, which include imprisonment of up to 10 years and unlimited fines for individuals and companies. Finally, it argues that Bangladesh should introduce similar anti-bribery laws to penalize bribe payers and ensure companies have adequate procedures to prevent bribery.
Similar to Chartered Secretary - The Black Money Act - is It a Panacea (20)
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The Black Money Act - is It a Panacea?
The Black Money Act has come into operation from July 1, 2015.The Act is primarily a
taxation statute but with severe criminal sanctions for evasion of tax on undisclosed asset or
income located abroad. In other words, the Act has no application with respect to domestic
assets or income.This article analyses the finer nuances of this legislation and attempts to
understand why tax evasion has been brought within the scope of money laundering and
whether it has any relationship with international conventions.
Sudipto Banerjee, ACS Abhishek Anand, FCS
Senior Legal Editor
Taxindiaonline.com
Delhi
Company Secretary
TDI Infrastructure Ltd.
Delhi
sudipto.banerjee84@gmail.com csabhishek.a@gmail.com
INTRODUCTION
T
he generation of black money is a mutating phenomenon
and hence, the expression 'black money ' is extremely
either from illegal sources like crime, extortion, bribery
or from legal sources on which no tax has been paid.
The insurmountable pressure on the Government
from all corners of the society to combat black money
led to enactment of the Black Money (Undisclosed
Foreign Assets and Income) And Imposition of Tax
Act, 2015 (Black Money Act or the Act). The genesis
of the Act lies in the recommendations of the Special
Investigation Team (SIT) constituted by the Supreme
Court. Recently, the Black Money Act along with the
has invited intense debate on this subject. This Act
and assets, a predicate offence. This article analyses
understand why tax evasion has been brought within
the scope of money laundering and whether it has any
relationship with international conventions. The grey
areas in the legislation and the ground realities are also
OVERVIEW OF BLACK MONEY ACT
Taxing foreign income and assets
The Black Money Act has come into operation from July 1, 2015.
The Act is primarily a taxation statute but with severe criminal
sanctions for evasion of tax on undisclosed asset or income located
abroad. In other words, the Act has no application with respect to
domestic assets or income. Section 3 is the charging section which
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levies tax at the rate of 30% on such undisclosed foreign assets
and income belonging to a resident assessee but excludes not
ordinarily residents as per Section 6 of the Income Tax Act, 1961
(IT Act). The tax liability to be computed without any deduction,
exemption or set off against carry forward losses which is otherwise
allowed under the IT Act. The assets and income taxed under this
statute will no longer be brought to tax under the IT Act. While the
available guidance can be found in the instructions to the income
be safely inferred that assets would include both moveable and
immoveable assets for the purpose of disclosure under this Act.
The value of the undisclosed assets shall be calculated on the basis
of market value as on the date it came in notice of the AO. This
means that if Mr. A holds a property in London bought in 2000, fails
to disclose the same in his return, and it came to notice of the AO
in 2017, then the tax would be calculated on the market value of
in the Act, but it appears to be the market value in the concerned
foreign country where the asset is located. However, an asset can
be considered as undisclosed, only when there is no explanation
for the source of investment in such asset or the explanation is not
Penalty and offences
Section 41 provides penalty which is three times the amount of
tax so calculated on undisclosed foreign income and assets.
In other words, the quantum of tax and the penalty combined
exceeds the total income which has evaded tax which raises the
obvious question on recovery. The Black Money Act provides
an exemption from any declaration in the return if the aggregate
lakhs. Chapter V of the Act deals with offences and prosecution
and provides under Section 51 that if an assessee willfully fails
not disclosing such assets or income, the same amounts to an
offence for which imprisonment ranging from minimum six months
Section 276C of the IT Act. Further, it provides that if an assessee
willfully attempts to evade in any manner whatsoever to pay tax,
penalty or interest under this Act, then the asessee shall be liable
to imprisonment ranging from minimum three years to ten years
any manner whatsoever clearly shows the
expansive interpretation intended by the legislature so as to capture
any possibility or manner of tax evasion. The Act also provides
of value equivalent to the amount due under the Act.
Culpable state of mind
The cardinal principle of criminal jurisprudence is that there should
be culpable state of mind before one can be held guilty. However,
this requirement of proving mens-rea is excepted in the context of
economic offences. There is presumption of culpable mental state
in legislations like Narcotic Drugs and Psychotropic Substances
Act, 19851
and Customs Act, 19622
. Therefore, similar statutory
presumption of culpable state of mind is also provided in the Black
Money Act. The implication of this presumption is that when the
of offence under Chapter V of the Black Money Act, the statutory
presumption of mental state shall be invoked i.e., the assessee
has willfully committed such offence. In other words, the onus
1 Section 35 and 54.
2 Section 102.
The cardinal principle of criminal
jurisprudence is that there should be
culpable state of mind before one can
be held guilty. However, this requirement
of proving mens-rea is excepted in the
context of economic offences. There is
presumption of culpable mental state
in legislations like Narcotic Drugs and
Psychotropic Substances Act, 1985 and
Customs Act, 1962. Therefore, similar
statutory presumption of culpable state of
mind is also provided in the Black Money
Act.
The Black Money Act - is It a Panacea?
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shifts onto the assessee to rebut such presumption and prove that
there was no such motive or intention or knowledge to commit the
offence. While this may appear ensuring better rate of prosecution,
but the undisclosed assets or income would be located abroad,
so the information would have to be obtained from the foreign
even prima-facie case would remain a far-fetched possibility. One
must also remember that since the offences are strictly criminal in
nature, the test of proof would remain 'beyond reasonable doubt'.
Presently, when we are already struggling to obtain substantial
evidence in income tax proceedings which is civil in nature, it
would be a greater challenge to meet the standard of evidence in
criminal prosecution.
Criminal liability of Corporations
The vicarious liability of director, manager, secretary or any other
For any offence committed by a company, every person who was
responsible for the conduct of the business of the company at the
time when the offence was committed shall be deemed to be guilty
of such offence. Further, Section 56(3) clearly mentions that for an
i.e., imprisoned for the prescribed term under the Act. Section 35
also provides that the 'manager' shall be liable to pay the amount
if the amount due cannot be recovered from the company. The
present Act overrides the provisions of the Companies Act, 2013
with respect to the liability of the 'manager', in the event of any
conflicting provisions.
Charges for Abetment
Similar to any criminal legislation, the Black Money Act punishes
for abetment, if a person abets or induces in any manner the
assessee to provide a false declaration relating to tax payable
under this Act. Therefore, the deterrent element under this Act
consultants like lawyers, Chartered
Accountants, Company Secretaries, etc. can be punished under
this Act for abetting clients in concealment of foreign income or
assets. The punishment is for minimum six months and can be
upto seven years. Therefore, this certainly calls for higher degree
consultants while advising their respective clients.
Compliance Window
Interestingly, Section 59 of the Act provides a one-time compliance
window to such persons who have undisclosed foreign assets
and income, to come forward and make a declaration before the
Principal Commissioner of Income Tax. Such person availing this
compliance window would be exempted from criminal prosecution
under the Black Money Act but such person would still have to
pay tax at the rate of 30% and a penalty of 100% of such tax.3
Further, the tax and penalty paid under the scheme would be non-
refundable, which means that even if there are any errors in the
computation of quantum of tax and penalty, the declarant has no
right to claim refund. The one-time tax compliance window which
September 30, 2015 with December 31, 2015 as the deadline for
payment of tax by the declarants.
Assessment proceedings prosecution
The assessment proceedings under this Act would follow the same
the High Court has to be heard by Division Bench. Once the tax
by the assessee, irrespective of the appeal pending before the
High Court or Supreme Court. This will act as further deterrent
and also add to assessee's cost of litigation. The assessment or
reassessment has to be completed within two years from the time
of notice issued to the person for the production of documents
or accounts. However, the time taken in obtaining information
from the foreign authorities shall be excluded for computation of
this time period. The Act has taken away the cap of 16 years for
reopening any assessment (as given in the IT Act) and therefore,
the AO has the power to go back as many as any number of
years which certainly adds to the deterrent element. As far as
prosecution is concerned, the same can be launched only after
the prior permission of Principal Commissioner or Commissioner
or Commissioner (Appeals) is obtained. Right now, the Act is silent
on the court where the prosecution would be launched. However,
it is likely that the Government would constitute 'Special Courts'
as done under the PMLA for trial of complex economic offences.
PREDICATE OFFENCE - SIGNIFICANT CHANGE
Section 88 of the Black Money Act provides that the offence
of willful attempt to evade any tax, penalty or interest shall be
considered as scheduled offence (predicate offence) under
the Prevention of Money Laundering Act, 2002 (PMLA). This
3 Section 60 and 61.
The Black Money Act - is It a Panacea?
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tax evaded on income earned even from a legal source will be
treated at par with the proceeds of crime.4
Predicate offence has
which means any offence or crime from which proceeds or money
have been generated.5
Under the PMLA, all offences listed in the
schedule are considered as predicate offence.6
The White Paper
only includes wealth earned from illegal means but also from
legal sources. Considering the cancerous growth of black money,
the ambit of PMLA has been expanded to include legal income
concealed from the public authorities like evasion of customs
duty.7
But with this amendment, the evasion of income tax with
respect to foreign assets and income has been brought within the
scope of money laundering. The repercussion of this would be that
investigation can be carried on by both income tax authorities and
Enforcement Directorate (ED) which may lead to simultaneous
prosecution under the respective laws. Under the PMLA, the onus
of proof again lies upon the person who claims that the proceeds
of crime alleged to be involved in money laundering, are not
involved in money laundering. Also, there are separate provisions
a person is convicted. Additionally, the principle of vicarious liability
PREDICATE OFFENCE - LINKAGE
BETWEEN BLACK MONEY ACT
INTERNATIONAL CONVENTIONS
There are severe criminal sanctions and deterrent factors under the
Black Money Act. Further, the Act makes tax evasion as predicate
question arises where the evidence would come from when the
bank accounts and assets are located abroad. Under the IT Act,
there has not been a single case of successful prosecution with
holding accounts in HSBC Bank was shared by the French
Government, however, prosecution could be launched only in
2015. Besides, as per Section 5 of the IT Act, an ordinarily resident
assessee has to disclose his global income in India. Further, the
Finance Act, 2012 introduced the requirement for an ordinarily
resident to disclose the assets and bank accounts located abroad
in the income tax return. Therefore, the moot question arises what
objective are we going to achieve by linking tax evasion to predicate
offence? Does this amendment provide the tax authorities with
any new recourse to obtain information? For understanding these
questions, one has to look at the international scenario.
Many countries treat tax evasion as civil offence and therefore,
4 With this amendment, India joins the club of 25 member nations like U.S., Australia, France,
etc, who treat tax evasion as money laundering offence.
5 Article 2(h) of United Nation Convention Against Corruption.
7 Schedule A Paragraph 12 - Entry 135
whenever the Indian authorities sought information from foreign
counterparts with respect to Indian resident having foreign bank
accounts or assets, the same was turned down on the ground of
laws or skewed provisions of the Double Taxation Avoidance
Agreements (DTAAs). To counter this inability, the said amendment
in the PMLA was mooted through the route of Black Money Act
to make tax evasion as predicate offence, so the tax authorities
can be given a new recourse to gather vital information from their
foreign counterparts. Following are the important options which
are now possibly available to the Indian tax authorities to counter
black money.
Financial Action Task Force (FATF): After many years of
battling, India could acquire the privileged membership of FATF
in 2012.8
Every member of the FATF is under an obligation
to share information with the other members, if it is a money
laundering offence. This is where the Black Money Act comes
as facilitating agent. Since offence under the Black Money
Act is now a scheduled offence under the PMLA, prosecution
would be launched not only under the Black Money Act, but also
under the PMLA. Once PMLA gets triggered, India would be
in a position to seek co-operation from FATF member nations
because money laundering is a criminal offence in each of these
members of the FATF. With this, members would be under an
obligation to co-operate with a requesting country (like India) as
per the FATF recommendations. The request could be for host of
assistance like legal assistance in investigation, prosecution and
related proceedings. Since the offence is in the nature of money
laundering, such request can no longer be refused on the grounds
9
But most importantly,
abroad.10
United Nations Convention against Corruption (UNCAC): The
next pertinent question is how does the Black Money Act help us in
the repatriation of the undisclosed foreign assets or income stashed
away abroad. To answer this question, one has to understand in
the context of UNCAC which treats money laundering as serious
offence and provides an international framework for curbing the
same. As explained earlier, since the Black Money Act treats tax
evasion as money laundering, India being a member of UNCAC
can avail the co-operation of the member nations for establishing
title of property or income belonging to any resident assessee.
Chapter -V Asset Recovery (Article 51-
59) which constitutes a fundamental principle of the UNCAC and
and has therefore, prescribed detailed recommendations which have to be implemented by
all the member nations. India has incorporated these recommendations in the PMLA vide
smuggling of migrants, over-invoicing and under-invoicing under customs etc. have been
made offences under the PMLA.
9 See, International Standards on Combating Money Laundering and the Financing of Terrorism
and Proliferation, FATF Recommendation 37. Mutual Legal Assistance.
10 Id.
The Black Money Act - is It a Panacea?
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like money laundering. Article 54(1)(a) of the UNCAC requires each
issued by a Court in another member country. This means that, if a
competent court in India passes an order under the Black Money
situated in Germany, the authorities in Germany shall co-operate
in execution of such order.
However, for seeking any co-operation or repatriation of any such
assets, India would have to establish atleast prima-facie ownership
i.e., tax has been evaded under the Act. Further, India would
while tax evasion has acquired the status of predicate offence,
the problem of black money can be effectively countered, only
when there is sharing of information on real time basis between
all taxation authorities without the need of specific requests. The
solution to this problem probably lies in the automatic exchange
of information regime.
Automatic Exchange of Information (AEOI)
for Economic Co-operation and Development (OECD) has
piloted Multilateral Competent Authority Agreement on Automatic
Exchange of Financial Account Information which has been
signed by 61 nations till date, including India.11
It is expected
that by September 2017, all the signing member nations would
incorporate the requirements under this declaration in their
domestic legislations, which would provide real time information
as and when any banking transaction happens, without making
already signed the Foreign Account Tax Compliance Act (FATCA)
with India and many other countries which requires both US and
the signing country to share all information related to banking
transaction with the respective revenue authorities. Presently,
bilateral agreements like Tax Information Exchange Agreements
are in place where tax information are shared but only on requests.
But these bilateral agreements have several limitations and
be overcome by the AEOI regime. Therefore, the possibility of
successful prosecution for tax evasion under the Black Money Act
or for committing predicate offence under PMLA would be largely
GREY AREAS UNDER THE ACT
Section 2(11) of the Act provides that if the explanation provided
by the assessee about the source of investment in the foreign
assets is not satisfactory in the opinion of the AO, then such assets
shall be treated as undisclosed foreign assets. In other words, the
explanation of the assessee would have to meet the satisfaction of
11 http://www.oecd.org/ctp/exchange-of-tax-information/MCAA-Signatories.pdf (last visited on
August 10, 2015).
the AO which could be subjective in nature. This is the point where
there is a possibility of arbitrary discretion being exercised by the
AO. Immediate inference can be drawn from the experience of
Section 147 of the IT Act which has witnessed amendments and
of Section 147 empowered the AO to reopen assessment when
'in his opinion' there was a case of income escaping assessment.
However, the 'opinion' has resulted in several arbitrary orders
of this section in 1989, wherein the words 'his opinion' were
substituted with 'reasons to believe'. The Supreme Court has
already held in the context of Section 147 that AO must exercise
due care and caution and should not reopen assessment on mere
change in opinion or for reviewing purpose.12
The present language
of Section 2(11) may lead to potential disputes.
Compliance Window - Is it Amnesty Scheme ?
The compliance window for the defaulters has already generated
lot of news and the Government is playing extremely cautious
in ensuring that the compliance window is not perceived as
amnesty scheme, because the constitutionality of the last
scheme i.e., VDIS was challenged for violation of Article 14 of
the Constitution.13
While the constitutionality of VDIS scheme
was upheld after some modifications which were in violation
of Article 14, the basic argument still remains that amnesty
schemes discriminates between honest and unscrupulous
assessee and promotes tax payers to be dishonest. The
Government of India had also submitted an affidavit before
the Supreme Court for not coming out with any such amnesty
schemes in the future. Moreover, if one looks at the past income
tax disclosure schemes, they have certainly not performed well,
first, because of lack of visible seriousness on the part of the
Government, and secondly, due to absence of real deterrence
of facing prosecution. The last scheme Voluntary Disclosure
of Income Scheme, 1997 (VDIS) could garner only 0.9% black
money of the GDP as against the estimated 30% prediction.14
The experience of amnesty schemes all across the globe
suggests two important lessons ? first, tax offenders respond to
such schemes only when it either offers high concessional rates
or when there is clear and present deterrence of prosecution.
However, under the present scheme, there are no concessions
besides exemption from criminal prosecution. Secondly, due
to absence of relevant information with the authorities, the
deterrence factor may not be present.
Declaration under Compliance Window
The one-time tax compliance scheme has raised several practical
complications with respect to valuation of bank accounts, shares of
listed shares, meeting all compliances within too stringent deadlines,
etc. Further, upon combined reading of Section 59 of the Act and
12 Commissioner of Income Tax, Delhi v. Kelvinator of India Limited, [2010-TIOL-06-SC-IT-LB].
13 All India Federation Of Tax Practitioners v. Union Of India Ors., [2002-TIOL-826-SC-IT].
14 Black money law is no magic, S. S. Khan, Financial Express, March 19, 2015.
The Black Money Act - is It a Panacea?
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Circulars issued pursuant to one-time tax compliance scheme,
one may get an impression that even non-residents are allowed to
participate i.e., declare their undisclosed foreign assets under the
compliancewindow,althoughtheActexcludesnotordinarilyresidents.
The compliance window is also not clear on the aspect whether a
declarantwouldalsohavetodisclosethesourceoftheassetsandwhat
would constitute satisfactory explanation, which is always subjective
in interpretation. Also, the Act provides that if any declaration is found
to be made by misrepresentation or suppression of facts, the same
shall be rendered to have been never made. However, there is no
timeline provided beyond which the authorities cannot consider such
declaration as void, in other words, the matter will not come to rest.
It would also be interesting to see how the revenue authorities treat
a declarant whose declaration is rejected. To sum up, with so many
avail the option of compliance window.
Impact on offshore-companies
The Finance Act, 2015 has introduced the concept of place of
effective management (POEM) for determining the residential
status of offshore companies. It has amended Section 6 of the IT
Act which provides that if key managerial and commercial decisions
are taken in India, then such company shall be considered as
resident company for the purpose of IT Act. Therefore, several off-
shore companies operating in India may feel apprehensive over the
applicability of the Black Money Act and repercussions thereafter, if
they are treated as resident company by virtue of the test of POEM.
the Black Money Act or in the IT Act. The only guidance for this
expression can be drawn from the instructions provided along with
foreign trusts since usually persons hold foreign bank accounts or
to trace. However, this may also raise a question for testamentary
without his knowledge. The repercussion of failing to disclose
interest in such trusts still remains a question.15
Co-ordination between ED Revenue Authorities
laundering which means parallel investigation and proceedings
both under the said Act and PMLA, which means constant co-
ordination between the two independent authorities. Theoretically,
there seems no problem with such exercise, but unfortunately
co-ordination between investigative authorities in India remains a
big concern. The 2014 report of Taxation Administration Reforms
Commission clearly highlights the glaring lacuna in co-ordination
even within the revenue department. Therefore, the Government
would have to bring out clear administrative procedures not only
to ensure proper co-ordination between the authorities but also to
WAY FORWARD
The Black Money Act in isolation can neither ensure better chances
of prosecution nor guarantee repatriation of undisclosed foreign
assets. It is quite clear that the success of this legislation to a
large extent hinges upon the information India may receive from
the foreign authorities and host of many other factors. However,
predicate offence, the Act allows us to avail options available
under international conventions. The AEOI may help the taxation
authorities to build a stronger case. Since tax evasion on foreign
obligation under the DTAAs would no longer act as impediment
in sharing of information.16
Even though the DTAAs are getting
renegotiated to overcome these confidentiality obligations;
however, these bilateral or multilateral agreements may not help
an information recipient country in handling the past cases i.e.,
the information sharing would be on prospective basis. Similarly,
the Black Money Act also cannot be applied retrospectively. In
other words, the possibility of retrieving money already lost to tax
havens and offshore bank accounts still appears bleak.
GROUND REALITY
While it would not be wrong to say that the provisions in the Act
15 India Cracks Down on Black Money, Nishith Desai - Research and Articles, March 24, 2015.
16 Ram Jethmalani v. Union of India, [2011-TIOL-57-SC-PIL].
The Black Money Act focuses only on
foreign assets and offshore funds, whereas
there is incessant generation of black
money in the domestic set up through
practices like trade mispricing in Special
Economic Zones, huge cash transactions
in real estate sector, bribery, narcotics,
betting, etc. Unless holistic amendments
are made in domestic laws and more
importantly, overhauling of the present
defunct enforcement mechanism is
undertaken, the flight of black money
cannot be curbed.
The Black Money Act - is It a Panacea?
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looks reassuring with some semblance of real deterrence; however,
our past experience with detection and prosecution both under the
PMLA and IT Act has been visibly dismal. More disappointing has
been our efforts to obtain information from foreign counterparts
regarding bank accounts or asset details of Indian residents,
whereas countries like U.S., France have obtained the same
either through diplomatic channels or arm twisting strategies.17
The HSBC Swiss bank account list stands testimony to the non-
serious approach adopted by the Government in prosecuting the
tax evaders. The list was handed over to us in 2008 and out of
approximately 1900 Indian names obtained till date, prosecution
could be launched only against 60 persons.18
of the prosecution could take another decade or so. Further, had it
not been for the intervention of the Apex Court in the landmark PIL,
SIT would never have been constituted. As far as the compliance
window is concerned, there are some serious challenges like its
constitutionality, and the Government may have to convince the
Supreme Court that this scheme is meant for offshore funds and
should be treated differently from domestic disclosure schemes.
The Black Money Act focuses only on foreign assets and offshore
funds, whereas there is incessant generation of black money in the
domestic set up through practices like trade mispricing in Special
Economic Zones, huge cash transactions in real estate sector,
bribery, narcotics, betting, etc. Unless holistic amendments are
made in domestic laws and more importantly, overhauling of the
of black money cannot be curbed. It is appreciable that the Black
Money Act links tax evasion on foreign assets and income with
money laundering, but this opportunity should have been made
applicable for the domestic tax evasion as well. This would have
created the much required palpable deterrence among the tax
evaders.
Finally, the Act contains several safeguards like issuing of notices,
grant of opportunity of being heard, recording reasons for various
actions and written orders, but considering the long track record
of adversarial approach followed by the tax authorities, there is a
genuine concern over the misuse of enormous power given under
the Act. There are numerous instances of capricious orders passed
by the revenue authorities in the past. The misuse of powers would
overburdened judiciary.
CONCLUSION
The majority of the provisions of the Black Money Act have been
taken from the IT Act.19
In other words, the changes brought
in by the Act could also have been addressed by necessary
amendments in the IT Act and PMLA. Therefore, it would not be
17 India and Tax Havens, Need for a Proactive Approach Vol. 8(10), May 2013.
18 It's Raining Black! Chronicles of Black Money, Tax Havens and Policy Response, Shailendra
Kumar, Lexis Nexis, May, 2015.
19 Income Tax Act, Section 271(1)(c) and Section 276C. These two sections already provide
penalty @ upto 300% and rigorous imprisonment upto seven years for willful evasion of tax.
wrong to mention that one of the primary reasons for bringing a
new legislation is an attempt to create fresh air of psychological
deterrence among the tax evaders. The urgency of gaining political
mileage also cannot be ruled out. However, the Black Money Act
has made tax evasion a predicate offence which has opened new
options for seeking co-operation and assistance from the foreign
authorities. The AEOI is also expected to equip the authorities
with better information which may lead to swifter investigation and
probably successful prosecution of the tax evaders. Moreover, the
Black Money Act has already come into operation. Therefore, what
matters is whether the Government would demonstrate the political
will to enforce the spirit of the new law? Whether the tax authorities
would take recourse to the options available under the international
conventions for obtaining information and concrete evidence? In
a nutshell, the question is now less of legal authority and power,
but more of political and institutional will to act. We already have
of black money. So, it would be highly naive on our part to assume
that any legislation like Black Money Act on stand-alone basis
expected, if we are ready to tide over the vested interests and act
pro-actively. Right now, all eye-balls are hooked upon the outcome
of the one-time tax compliance scheme.
REQUIRED
Company Secretary for a Multinational
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A leading multinational company located in
Andheri, Mumbai requires Company Secretary
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The candidate(s) having CA Inter as an
Interested candidates please mail their resume
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The Black Money Act - is It a Panacea?
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