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Can Triple Cobweb of Info Exchange Net Tax Evaders?
- Published on 07 December 2017
(Edited Image Courtesy: WB & IMF)
It is time to take a stock of ground covered by the world in tax transparency within the domain of tax administrations.
Organisation for Economic Co-operation and Development (OECD)-hosted Global Forum on Transparency and Exchange of Information for Tax Purposes (Forum) released on 17th November its first report on the status of implementation of automatic exchange of information (AEOI) standard.
“With exchanges under the AEOI Standard having now commenced amongst almost 50 jurisdictions there has been a major shift in international tax transparency and the ability of jurisdictions to tackle offshore tax evasion”, says the report.
The 147-countries/jurisdiction Forum held its 10th plenary meeting over three days ending 17th November at Cameroon.
The Forum also released Plan of Action for Developing Countries Participation in AEOI (PADCP-AEOI), apart from six peer review reports. These reports take stock of implementation of Exchange of Information on request (EOIR) standard in India, Italy, Isle of Man, Denmark, Jersey and Curacao.
PADCP-AEOI claims: “The impact of AEOI has been felt in the jurisdictions which are committed to implement the AEOI Standard by 2018 even before any exchanges have occurred. As reported by the OECD to the G20, in response to disclosure initiatives and similar measures put in place prior to the start of exchanges approximately 500,000 individuals have already disclosed offshore assets worldwide, and some EUR 85 billion in additional tax revenue has been collected. The evidence is also emerging from several jurisdictions that the number of foreign financial accounts and the income from these account reported to tax authorities have increased significantly.”
Introspect over Irrational Exuberance over Moody’s Mood Swing
- Published on 24 November 2017
(Image Courtesy: BJP)
Moody’s upgrade of India’s sovereign ratings is serving as a super-booster dose for National Democratic Alliance (NDA).
Moody’s Investors Service (MIS) upgrade release has prompted Finance Minister Arun Jaitley to ridicule and admonish critics of Modi Government’s economic governance. He stated: “Many who had doubts in their minds about India's (economic) reform process would need to now seriously introspect on their thinking”.
Modi Government and BJP also ought to introspect over this juvenile flaunt of dubious certificate. They should know there are also other such certificates that might freeze them in their zero-gravity track, if not leave them red-faced.
A case in point is civil unrest that can drag economic growth and put off potential investors. The UK-based global risks observer, Verisk Maplecroft, ranked India 4th after Syria, Yemen and Libya on its civil unrest index released during August 2016.
According to Maplecroft, “it is striking that Brazil, France, India, Mexico and South Africa, which have all witnessed substantial disorder in the last year, lack adequate structures to avoid grievances escalating into wholesale protests”.
Recall how angrily the Government had officially dismissed a report from Moody Analytics (MA) during November 2015 that cautioned the Government against hurting minorities in India. MA and MIS are two arms of Moody’s Corporation.
Don’t Overlook Article 35A as J&K’s Chicken-or-Egg First Riddle
- Published on 04 November 2017
(Jammu & Kashmir Tableau 26Jan2006 Image Courtesy: PIB)
“I am neither a Hindu, nor a Muslim nor any other, except that I am a man, a man with, common sense. As a man of common-sense, after perusing these agreements, what has been perplexing me is this whether Kashmir has acceded to India or India has acceded to Kashmir”.
That was late Surendra Mahanty participating in a Jammu& Kashmir (J&K) debate in Rajya Sabha on 5th August 1952. He described handling of Kashmir as “a story of bungling, a story of muddled-thinking”. Mahanty added: “I will not go into it, nor will I invoke the name of Mahatma Gandhi, the Father of the Nation, for defending, the indefensible.”
What perplexed Dr. Mahanty baffles more the man in the street as the saga has become extremely messy & bloody since then. The Might and Pride of India has been compromised by successively regimes that lack the political spine to call spade a spade – Kashmir problem is nothing but demographic blackmail of the rest of India.
And Modi Government has proved that it also lacks the spine by reviving the rotten idea of interlocution. It has used planned peace talks as an excuse to delay in hearing of the case against Article 35A, which is indefensible if we go by Parliament records.
Make Tax Certainty as the Workhorse of Global, Inclusive Growth
- Published on 02 November 2017
Image Courtesy: pwc.com (Paying Taxes 2017 report)
Multilateral institutions’ (MIs’) periodic discourse on global fiscal reforms for sustained, inclusive economic growth is not resulting in concerted, collective action. One would arrive at this conclusion after going through documents released at the recently concluded International Monetary Fund (IMF)/World Bank (WB) annual meetings.
The unfortunate aspect of such MIs’ efforts is that only a fraction of the valuable recommendations contained in their reports get implemented. A case in point is a joint report by IMF and Organisation for Economic Co-operation and Development (OECD) on ‘Tax Certainty’ prepared in March 2017 for finance ministers of G20 countries.
There is hardly any concerted action by G20/OECD/IMF to make ‘Tax Certainty’ the mantra for sustained, inclusive growth of world economy. Certain countries such as the United States and India have, on the contrary, contributed to tax uncertainty.
The US is formulating a tax incentives package whose spillover impact on other countries can’t be predicted at present. India has messed up goods and service tax (GST) as symbol of botched implementation of intended good and simple tax.
Before elaborating on benefits of tax certainty, consider first the latest resolutions and suggestions. The International Monetary and Financial Committee (IMFC) has resolved that its member countries will strive to implement domestic policies that develop an adaptable and skilled workforce and enhance inclusion.