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Date: November 22, 2024 Fri
Time: 12:13 pm
Time: 12:13 pm
Results for money laundering (india)
1 results foundAuthor: Kar, Dev Title: The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008 Summary: India's underground economy is closely tied to illicit financial outflows. The total present value of India's illicit assets held abroad ($462 billion) accounts for approximately 72 percent of India's underground economy. This means that almost three-quarters of the illicit assets comprising India's underground economy—which has been estimated to account for 50 percent of India's GDP (approximately $640 billion at the end of 2008)—ends up outside of the country. The finding that only 27.8 percent of India's illicit assets are held domestically support arguments that the desire to amass wealth illegally without attracting government attention is one of the primary motivations behind the cross-border transfer of illicit capital. In the post-reform period of 1991-2008, deregulation and trade liberalization accelerated the outflow of illicit money from the Indian economy. Opportunities for trade mispricing grew and expansion of the global shadow financial system—particularly island tax havens—accommodated the increased outflow of India's illicit capital flight. There is a statistical correlation between larger volumes of illicit flows and deteriorating income distribution. Tax evasion is a major component of the underground economy, which in turn is a primary driver of India's illicit outflows. Expanding India's tax base and improving tax collection has high potential to curtail illicit flows. Illicit financial flows cannot be curtailed without the collaborative effort of both developing and developed countries. Economic reforms key to stemming the outflow of illicit money from India and the developing world in general include: •curtail trade mispricing (a widely utilized tax avoidance technique of international businesses); •require country-by-country reporting of sales, profits and taxes paid by multinational corporations; •require confirmation of beneficial ownership in all banking and securities accounts; •require automatic cross-border exchange of tax information on personal and business accounts; and •harmonize predicate offenses under anti-money laundering laws across all countries that cooperate on the Financial Action Task Force. Details: Washington, DC: Global Financial Integrity, 2010. 73p. Source: Internet Resource: Accessed December 6, 2010 at: http://india.gfip.org/ Year: 2010 Country: India URL: http://india.gfip.org/ Shelf Number: 120391 Keywords: Financial CrimesMoney Laundering (India)Tax EvasionUnderground Economy |