Vodafone tax evasion case study

Post a Comment India Inc has been surging ahead audaciously with the support of its Information Technology developments with its repertoire of resources. Global players have been eying the Indian market, owing to immense opportunities that the continent provides; both in terms of expansion and profit. Investment patterns in India have shown positive growth over the years with significant process on the de-regulation front. This has boosted the image of India as a 'lookout destination' for investment and an emerging hub for economical activities.

Vodafone tax evasion case study

The criminals pay bribes to the tax authorities to hide their corrupt activities. Thus, they are rarely punished by the law. The criminals who conceal their accounts from the government authorities include big politicians, film stars, cricketers, and businessmen.

Some Indian corporations practice transfer mispricingby under-invoicing their exports and over-invoicing their imports from tax haven countries such as Singapore, UAE, and Hong Kong.

Indian black money - Wikipedia

Many times locally earned bribes, funds and collections are also routed abroad through hawala channels for evading from Indian tax authorities and consequent legal implications. Round tripping involves getting the money out of one country, sending it to a place like Mauritius and then, dressed up to look like foreign capital, sending it back home to earn tax-favoured profits.

Mauritius and Singapore with their small economies cannot be the sources of such huge investments and it is apparent that the investments are routed through these jurisdictions for avoidance of taxes and for concealing the identities from the revenue authorities of the ultimate investors, many of whom could actually be Indian residents, who have invested in their own companies.

The investor in PNs does not hold the Indian securities in her or his own name. These are legally held by the FIIs, but derive economic benefits from fluctuations in prices of the Indian securities, as also dividends and capital gains, through specifically designed contracts.

So, Indians are routing their foreign funds back to India as the capital appreciation in Indian capital markets is far more attractive. However, this story was a complete fabrication.

Vodafone tax evasion case study

The Swiss Bankers Association never said or published such a report. Anyone claiming to have such figures for India should be forced to identify their source and explain the methodology used to produce them.

Vodafone Tax case - A Case Study for Investments in India - Madhu S - MindTEXT

This revision, expected to become active by Januarywill allow the government to make inquiries of Swiss banks in cases where they have specific information about possible black money being stored in Switzerland.

As of December,the Finance Ministry has refused to reveal the names, for privacy reasons, though they did confirm that no current Members of Parliament are on the list. In response to demands from the Bharatiya Janata Party BJP opposition party for the release of the information, the government announced on 15 December that, while it would not publish the names, it would publish a white paper about the HSBC information.

Largest depositors in Swiss Banks are also reported to be Indians". In a hint at scams involving ministers, Singh said: Further, the share of Indians in the total bank deposits of citizens of all countries in Swiss banks has reduced from 0.

The list was obtained by French newspaper Le Monde and included the names of several prominent businessmen, diamond traders and politicians. Panama Papers The Panama Papers scandal is the largest-ever leak of information on black money in history. These documents pertain tooffshore entities and span almost 40 years.

The papers originated from Mossack Fonsecaa Panama-based law firm with offices in more than 35 countries.Latest breaking news, including politics, crime and celebrity.

Vodafone tax evasion case study

Find stories, updates and expert opinion. In India, black money is funds earned on the black market, on which income and other taxes have not been leslutinsduphoenix.com, the unaccounted money that is concealed from the tax administrator is called black leslutinsduphoenix.com black money is accumulated by the criminals, smugglers, hoarders, tax-evaders and other anti-social elements of the society.

Vodafone Case : Its Consequences

[Taxation] Advance Pricing Agreement, Arm’s Length, Vodafone Transfer Pricing, DTC, GAAR, Advance Tax ruling explained. Subscribe Economy Comments 4 years Ago. The Vodafone tax case has given India the opportunity to create a model for other countries, which follow source-based taxation principles 6.

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