"If all the money kept in Swiss banks was got back to the country, it would not have to go looking for gold", quips the Prime Ministerial candidate of BJP. And we couldn't agree more. That's because India has more money in Swiss banks than all the other countries put together. The perils of black money have haunted the Indian economy for quite some time now.
Everyone has been talking about good governance. But a concrete action is usually given a miss. And discussions remain on paper. But many nations worldwide have woken up to the harsh reality of the menace created by black money. India too is seeing a silver lining. In an effort to seek details on suspected black money stashed in Swiss banks, India, Switzerland and 45 other nations have already agreed upon automatic exchange of tax information. This declaration will make available the details of alleged illicit funds parked in tax havens. Isn't that a revolutionary step in the history of our country? Of course it is. For no longer, money can be hidden on offshore accounts.
But still we have reasons to frown. For India and other countries' wait would last longer. And at least till 2017 when the new global standard for automatic exchange of tax information is expected to come into effect. Thus, the hopes to get the black money back to home country anytime soon have got dashed. The Paris-based think tank OECD is already working on lines of developing new global tax standards. But a lot of work needs to go into converting this standard into a domestic legislation. Also propping up of bank accounts to accommodate the new standards will consume time. And things are at an early stage. Also the new standard is expected to be finalized only in September this year.
It's high time the murky world of black money needs to get uprooted off the system. Let's face it! Challenges of dealing with black money are severe. But well begun is half done!
Do you think black money can be eradicated from the system? If yes, what are the means through which it can be done? Share your views on the Equitymaster Club.