Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Will the black money problem be solved?
Wed, 18 Feb Pre-Open

The Narendra Modi government has been under flak for not keeping up with its electoral promise of bringing back black money from overseas tax havens. A recent investigation has revealed that HSBC's Swiss private banking arm has 1,195 Indian clients holding undisclosed accounts/assets abroad (Source: Indian Express). This is nearly double the number given by the French government in 2011. However in the absence of crucial details, the wait for some concrete action by the government has been pushed ahead.

As per a report by the Swiss government, bank account details of Indians under the 'automatic information exchange' framework would be provided by only 2018 (Source: Firstpost). The 'automatic information exchange' mechanism was developed by The Organization for Economic Co-operation and Development (OECD) to enable countries to share information in the fight against tax evasion and frauds. Under the framework, countries would collect data from 2016 and exchange information from September 2017 onwards. While 58 countries in the first group have agreed to exchange information in 2017, Switzerland being part of the second group will share information in 2018.

The biggest challenge with regard to unaccounted money in overseas countries is in getting necessary information to build a strong case of tax evasion. In this case the provisions of the specific information exchange agreement with a country will play a vital role. India has increased efforts to bring black money back. In addition to automatic exchange of information, the country is also re-negotiating tax treaties with various countries. It remains to be seen whether the menace of black money is finally tackled or remains a mere ploy by politicians to attract vote bank.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Will the black money problem be solved?". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 16, 2018 (Close)