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The key to Modi's success and India's success is bringing in the unaccountable economy into the official economy.
For most developing nations this could be anything from 20--50% of the real PPP GDP.
So if the Indian PPP GDP is $5.5 trillion.....then perhaps as much as $1.8 trillion of the Indian economy operates in the unofficial sector.
One of the reasons why the Mughal Akbar was so successful was his efficient tax system, and the ability to accurate assess peoples income.......and then spend it on infrastructure.
Part of that project is tracking the unaccountable money in the 70 odd tax havens around the world, and then there after discouraging Indian's from following the practice.
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A permanent SIT to crack black money cases?
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By Times of India.
As the Special Investigation Team on black money completes one year in
office, the government is in the process of setting up an investigation
unit which will act as a permanent institutional mechanism to deal with
probes related to black money both within and outside the country.
The investigation unit is most likely to be headed by a
commissioner-level officer and will function under the revenue
department in the finance ministry. It will have officers drawn from the
CBI, Income Tax, DRI and Intelligence Bureau, Financial Intelligence
Unit and the Serious Fraud Investigation Office as part of the team to
investigate cases, a source said.
READ ALSO: Keep foreign info secret, CBDT tells taxmen
On
Wednesday, India joined the Multilateral Competent Authority Agreement
along with France, Australia, Canada, Costa Rica, Indonesia and New
Zealand on automatic exchange of financial information.
Already this multilateral automatic information exchange body has 94
signatories, including Switzerland and many of the tax havens with which
India has long been negotiating exchange of banking information related
to its citizens.
These 94 countries have committed to exchange information on an automatic basis from 2017 onwards as per the agreement.
Coinciding with the signing of this pact, the Central Board of Direct
Taxes on Wednesday issued a directive to its income tax officials to
maintain secrecy on all such information and subsequent investigation of
cases.
The SIT on black money was notified on May 28 last year
and as part of its mandate an institutional structure was to be created
for probing cases related to black money.
READ ALSO - Swiss a/cs: Vasant Sathe's kin summoned as accused
This 'separate infrastructure' of the SIT will conduct and coordinate a
multi-agency probe on cases of black money both within and outside
India, said a top finance ministry official.
This is a
departure from previous UPA regime where then finance minister Pranab
Mukherjee had constituted Directorate of Criminal Investigation within
the Income Tax and had mandated it to probe all black money cases. Now,
each case of black money will be subjected to a multi-agency probe
under SIT's special investigation unit.
The SIT is headed by
Justice M B Shah, a retired judge of the SC, and heads of all the
enforcement and intelligence agencies are its members.
