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ANOTHER VDIS TO UNEARTH BLACK MONEY – NO IT WILL BE TO WHITEWASH BLACK ILLGOTTEN MONEY – FOR SUCCESS LET IT BE CLEANSE ALL SINS SCHEME. |
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ANOTHER VDIS TO UNEARTH BLACK MONEY – NO IT WILL BE TO WHITEWASH BLACK ILLGOTTEN MONEY – FOR SUCCESS LET IT BE CLEANSE ALL SINS SCHEME. |
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“When amnesty can be granted to bring criminals in social stream, the ill gotten money can also be brought in productive channels through amnesty schemes by levying a tax or fees to CLEAN ALL SINCS AMNESTY SCHEME” - Author Some relevant links: President speaks out against corruption, disruption of Parliament- Story “Namak Ka Daroga” by great Munshi Premchand (1880- 1936)- http://www.brandbihar.com/hindi/literature/preamchand/premchand_namak_ka_daroga.html Press Statement on black money at www.taxmanagementindia.comhttp://www.business-standard.com/india/news/ unearthing-indian-black-money-in-switzerland/422754/
http://www.pdicai.org/indexnl1.aspx?nlId=62978 24/01/2011 Unearthing Indian black money in Switzerland “Sahitya samaj ka darpan hai” – Literature is mirror of society: Story “Namak Ka Daroga” by great Munshi Premchand (1880- 1936) can be read on the following link: http://www.brandbihar.com/hindi/literature/preamchand/premchand_namak_ka_daroga.html This story is also reflection of the corruption and importance of UPARI KAMAI. This story is of time around year 1930, when restrictions were imposed on manufacture and consumption of salt leading to hoarding and malpractices in trading of salt. The story indicates the proportion of bribes which could be offered to save arrest, and take away boats of salt and the way in which arrested wealthy person got scot free and the honest officer who refused to take bribe (raised up to Rs.40000) was warned by court to be more careful and not to harass people of repute and how the illegal act of wealthy person was ignored. This also shows that the person who increased offer for bribe to the officer up to Rs. forty thousand at that time he himself appreciated honesty and Dharamparayanta, and offered the same person responsible post of manager of his business and properties at annual take home package of Rs.6000/- + perks. In deed that was a very good salary and employment at that time as Rs.9000/- (Rs.6000 cash + Rs.3000 perks estimated) works out to about Rs. 36 lakh if we convert 9000 silver coins into current rupee terms @ Rs.400/- per silver coin. However if we compare this with bribe offered to the same person by the same person for a onetime we find that the remuneration is very petty sum in comparison to the bribe offered for one time service. The bribe offered Rs.40000 at that time workout to present days about Rs.160 lakh in terms of silver. From the information about money found with a few of officers searched by investigation agencies, as found on websites of investigation agencies ,author feels that the proportion of salary and bribes might have increased many fold since the above mentioned story was written. We find reference about corruption in present stories, films and TV serials also. We can find wives and children of senior officers spending large sums of money in markets and malls without any hesitation and care about price – this is only because easy-money they get. Author while travelling have heard about corruption as a major but accepted issue by public at large. The public have accepted corruption as normal, because without indulging into corruption to make extra money very few will work in government departments and politics?. It is felt that even if 70-80% of public funds are looted, and only 20-30% of funds reach to the intended beneficiaries, still work is done. It is normal feeling that people join politics and government service generally with an open and firm mind to make extra money by way of not exercising power as well as by exercising power that is by doing some work and by not doing some work both and by doing work in particular manner also. Besides annual package “UPARI KAMAI” is also one of important criterion while considering resumes of boys for marriage who are in service (private and public both). In literature we can find large number of stories on this aspect. The story “NAMAK KA DAROGA” as discussed earlier is one of such example of old writings in which we find aspect of “UPARI KAMAI”, “BRIBES”, corruption and proportion of bribes. The public feels that this still hold true. For a recent example, from literature, the story in TV serial titled “LADO” aired on Colors Channel is also indicative as to how a petty Sarpanch (Ammaji) of a very small rural area having just about 9000 voters have made money out of funds meant for villagers and how lavishly she and her big family lived, whereas the common person remains poor and dependent of Ammaji so that Ammaji remain powerful. Author has heard even vehicle drivers speaking about money lying with police officers (to whom they see taking bribes regularly and sometimes have to pay themselves as well for some mistakes or alleged mistakes of traffic rules), other officers, and politicians in wide range of money between few lakhs to thousand of crores. That is indicative of the feeling amongst poor strata of our public. Recently during travels author heard co-passengers discussing that candidates for Panchayat elections, just to become a sarpanch spent Rs. 40 - 60 lakh, and in some cases even above 100 lakh rupees because for each Panchayat local government has promised big amount every year to be spent at discretion of Sarpanch and from that kitty a Sarpanch can easily take a large chunk of about 70% for his personal gains leaving only balance for other sharers (about 15%) and the public only 15%. We hear about money game for posting at lucrative police stations, and lucrative posts and positions in various government departments. We find some cases reported by media about corruption with much fanfare for few days however, those cases also get silent burial, may be because the other people also get their share in illicit money and then keep mum. These may be hearsay and courts may not accept them as evidence. However, such grape vine and examples clearly shows that public is well aware or have well founded apprehensions rather believes about the huge amount of ill gotten money and properties kept by politicians and bureaucrats inIndiaand abroad. Ye jo public hai who sab janti hai- it is widely known to public: Public has suffered most due to corruption so public know about corruption. Whether a small farmer or a rickshaw puller, a trader or an industrialist, most of them have faced corruption and have faced forces by authorities to pay out bribes because otherwise it may be difficult to work. If one observes on roads, pavements, one can notice police extracting money even from Rickshaw Pullers and Small hackers / traders who sell goods on roadside on carts or on pavement place. It is general believe that in government departments money is made by raising bogus bills, and accepting bribes. Scams like Fodder scams are common. Just to illustrate at the grass root, we can find dirty toilets in government departments, government hospitals, government hostels, dirty roads and pavements although the government and municipalities have substantial budgets and are paying (and/ or showing paid) hefty salaries to sweepers, and spending substantial amount on cleaning tools , apparatus and materials. Another example can be works in Public Works Departments (PWD) and Municipal work. The money is spent for doing best quality work with best quality material or it is possible to do so according to the rate paid for the supply and work, but work done is of very poor quality so that repairs are regularly required. We find government officers and staff working hardly for 2-3 hours (except during some part of year – time barring matters). In public transport vehicles run by government or government agencies we find very poor condition of cleanliness and repair and maintenance in spite of huge sums of money spent for cleaning and maintenance of vehicles. Railways: The public has general feeling that if corruption can be halved in Railways they can get very good services at much lower rates. The work force of Railways do not work full time, there is large scale siphoning of funds in several ways. Hospitals- Public has general feeling that money spent on running and maintaining hospitals and for medicines is not properly spent and there is corruption. We find general doctors working only few hours of normal duty hours in hospitals, many specialist doctors who are also teachers in medical college, hardly take regular classes, they teach students only while taking round of wards to see patients. Other doctors are also found to spend only about half of time on their duty in government hospitals and rest time is spent on private practice. The above are just some simple examples at grass root level which general public directly feel. General feelings of public: Power make people corrupt is general saying and general feeling. With increase in power salary package increases so the demand of bribes increases. The bakshis or tip given to a peon is one form of petty bribe, and that’s why unfortunate poor peon is some time arrested for taking petty bribe. The amount of tip or bribe increases with hierchy in the organization. It also increases with salary of officers and staff as well as the inflation. This is general feeling of public, it may amount to hearsay or grapevine because people are afraid to come forward openly in fear of further harassment. Bribes are for doing legal work and not illegal work: Generally bribes are paid to get work done, as per law and quickly. It is wrong to say that bribes are paid to get illegal benefits because officers have no courage to work in an illegal manner to give any benefit to public, though they feel very powerful and courageous to act in illegal manner to deny benefits to the public. While considering request for giving any benefit in illegal manner, officers are afraid of losing service, however, when they act in illegal manner and deny benefits or make illegal demands from public, they may be appreciated for such actions. It is widely known to the public at large that how various government department officers and politicians make money. In any large social gathering, one can find that public is well aware about corruption because and expenses one has to incur on different aspects while dealing with various departments of government and government companies etc. Recently there is mass communications by way of e-mails and SMS amongst public about new accounting or financial terms. The emails and SMS are willingly and enthusiastically being forwarded because readers believe that there is truth in the message. The massages read on the following lines: “New Accounting / financing terminology : 1 Lac = 1 Peti (This is an old descriptions in vogue for long past) 1 Crore = 1 Khoka, (This is also an old descriptions in vogue for long past) 500 Crore = 1 Koda. (this is new terms) 1,000 Crore = 1 Radia. (this is new terms) 10000 Crore = 1 Kalmadi (this is new terms) 100,000 Crore = 1 Raja (this is new terms) 10 KALMADI + 1 RAJA = 1 SHARAD PAWAR (New but known to public for long past) 10 SHARAD PAWAR = 1 Madam / Sonia ( this is new terms). Recently some well known persons including industrialists have also raised voice against corruption. Our honorable president Smt. Pratibha Patil, in her speech has also shown serious concern about corruption. There is also press release by government about steps being taken to bring home illicit balck money lying abroad. As per recent reports the government is planning to introduce another Voluntary Disclosure scheme to crack down on black money. The report reads as follows with highlights or catch words added by author: “To crack down on black money, the revenue department is contemplating a scheme to unearth such funds. The options under consideration include a tax amnesty scheme to get back ill-gotten wealth parked overseas. While I-T officials said that a scheme to unearth black money was under discussion in the finance ministry, they added that it was a preliminary brainstorming session and might not actually be announced. In the past too, at least on two occasions, there was talk of a tax amnesty scheme being introduced but finance ministers stayed away from any such proposal. When asked, CBDT chairman Sudhir Chandra refused to comment on the issue. The government had last introduced a tax amnesty scheme — the Voluntary Disclosure of Income Scheme — in 1997-98, which had helped unearth close to Rs 10,000 crore. The scheme had got judicial endorsement with the Supreme Court upholding its validity, though the government had told the court that it was a one-time measure.” Comments of author: Truly speaking the scheme will not be to crack down on black money but it will be in nature of a scheme to white wash black money and more particularly ill gotten black money. Black money (means in respect of which tax is not paid) which is earned legitimately and by fair and legal means is really not black money but can be described money held irregularly, by paying tax due this can be regularized. However, ill gotten black money has element of crime and irregularity both. It may be true that the scheme may target to get back ill-gotten wealth parked overseas. But what about ill gotten wealth kept insideIndia itself. We can say that the amount un-earthed by investigation agencies as shown on their websites and other news reports are jut tip of the iceberg of ill gotten money by politicians and bureaucrats. The preliminary brainstorming session must fructify in real scheme very soon and. Why proceedings should not be started: In usual course, whenever the income-tax Department has some information (even some causing just a belief) about un-disclosed income or property, proceedings are initiated by issuing appropriate notices to the person suspected to have undisclosed income or wealth to file return of income and/ or wealth or to reassess income or wealth as the case may be. Recently, initiation of reassessment proceedings have taken place for petty sums of income apprehended to have escaped. Similar exercise can also be in respect of money and property lying abroad. The government can seek information from concerned persons directly . Therefore, the government is empowered to initiate enquiry in such matters even without any bilateral agreement with foreign government. The moot question is why powerful people are not issued such notices to un-earth black and ill gotten wealth. Whereas , for general public rectification, revision, or reassessment orders are usual even for small amount of suspected underassessment of income due to bonafide claims having some contentious issues. Amnesty from all sins: To bring ill gotten money in productive channels whole heartedly it should be framed like a scheme like “CLEANSE ALL SINS SCHEME”. The tax rate may be a little higher say 45% (without any interest and penalty) but no question should be asked and no stigma should be attached for making a declaration there should not be any official stigma in case of government servants and politicians. The scheme should be designed to provide protection from investigating agencies like CBI and other anti corruption agencies of the Central Government, State Governments and other vigilance departments of government Companies, Municipalities etc. The declaration and payment of say 45% on current valuation of cash and / or other property should be accepted as consideration to “CLEANSE ALL SINS”. Thereafter there should be no stigma against the officer or politician or any other person who declare such ill gotten income or wealth. Tax unpaid money, money stashed abroad vis a vis real crime: A business person, a film actor, a professional or any other such person may have earned some income in cash and may not have disclosed and paid tax. This is however, not an ill gotten money, it is only irregularly held money which can be regularized by paying taxes. Let us take case of recent income tax raids on film stars. The allegations are that they received some consideration for acting, endorsement etc. in cash and did not pay income-tax. This money can at best be described as income liable to tax but cannot be called illegal, immoral or ill gotten money. This is fees for work done and not for committing any crime. Earning money by unfair means , by corrupt means etc. is not that bad as money earned by real crimes like murders (Supari -money), terrorism, drug trafficking, espionage, smuggling, … etc. When persons having committed serious crimes like murders can be freed from jail and made ministers just to save government, there is no reason that people who earned money by fair means but did not pay tax, or who earned money by corrupt means and did not pay tax to be branded as criminals. When amnesty schemes are applied to bring criminals in social stream then there is no reason as to why income on which tax has not been paid can be regularized by paying taxes and bring it into productive and regular channels. Lack of political will – public must come forward to press the need: From recent statements from leaders and long inaction and slow actions to let die cases over a period of time, we find that there is no will power to book powerful wrong doers and to bring back ill gotten money because the money belongs to powerful politicians and bureaucrats. Therefore, what public can do? The public can change government, but that will not help because the new people in power are also expected to indulge in corrupt means and make money. However, the public can do a lot by adopting pressurizing tactics to force government to tax such undisclosed income and wealth and bring back ill gotten money by politicians and bureaucrats. Some majors with slogan to stop corruption, unearth corruption, bring back money lying abroad and bring money with politicians and bureaucrats in productive channels can be as follows:
However, it is easy to say then do these things because by doing so one may face harassment and may have to suffer losses, but at some point of time someone has to do so and then find and encourage others to follow the same. Support of government is required: Support of government is required in form of assurance that a person who raises voice against corruption will not be harassed by government agencies. People bend over demands of corrupt officers because they have unbridled power to work in illegal manner and harass public and the judicial process of seeking justice is also slow. Bribes are paid not for doing any legal work but to avoid illegal work by government officers.
By: C.A. DEV KUMAR KOTHARI - January 29, 2011
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