Thanks to election season today Narender Modi and Finance Minister P Chidambaram both half heartedly promise to bring back Black money. How ? Process remains a secret.Hope of recovery emerges only by applying `Reverse Hawala`.
Arvind Kejriwal sets the fearless ball rolling by spelling the Account No of `Ambani` Brothers in Public.
To understand Heaven-Hell divide allow me to take you back to my old published archives of Dwarika Parichay.
Remove `e` from “Heaven” and we get a different paradise on this earth.“Tax Haven” is a hush-hush “Th” term coined by competitor banking system in early globalization era. It points out a far away foreign offshore land used as a shelter or a hideout of accumulated money.
Unlike feudal lords who used to identify a worship place used by people as a shelter or a hideout for the hard earned money, the modern industry uses offshore banks outside the country to park the loot. Such Banks are identified in countries like Switzerland, Netherlands, Luxembourg, Cyprus, Bahamas, Bermuda and so on. This list of havens continues to grow to compete with each other, to protect the money of investors in foreign lands.
Corporates pay extra to CFOs to help them to hide money in a Heaven. In most of the popular havens, there is no `capital gains’ tax, no corporate tax, no income tax for say 20 years, no gift tax and no withholding tax. The dirty game cannot remain so hidden- if the bank, the booty and the sources of production are found in the same country. The trick here is customer loyalty and commitment of secrecy. No one shall come to the foreign bank to park dirty money if this activity is not kept secret. Result; the bank and the host country flourishes by providing tourism incentives and luring hospitality to patriotic capitalists. The honest production driven country having no tax heavens; remains poor. However this myth gets broken when a superpower applies diplomatic pressure. According to global media last year the Swiss Bank agrees to help American Parliament fighting recession to know the names of secret account holders having American citizenship. This proves that getting the hidden money back for saving the crisis is possible.
Waste Money Management- How it works ?
What goes wrong in a business of Hell-Haven divide?
CFOs assist industrialists to steal money from the production cycle and pump it in the market of speculation and gamble called share baazar. Consumption or Industrial sales “score board” is kept hidden from the stakeholders of production and from the public investors. Unlike the wheel of production, the cycle of consumption throws open-unequal sharing, unequal profit, unequal responsibility, unequal surplus control and its dissemination. Public, in most cases as investors feel cheated but get re-convinced by the so called share market experts & promoters to invest again and again. CFOs who are well versed with Banking Laws & its twisted version are hired in the country hosting production. Back in host country say in India, these financial managers advice the Capitalist not to re-invest in the parent country as the indigenous policy analysed by them is comfortably declared as non-encouraging for faster `jobless` growth of money.
Competition in the industrial playing field is good only when the competition forces the whistle blowers to blow off the rival company. In-house competition in production and sales team helps but this competition fails to touch the issues of transfer of money to heavens. For more details read my recent article published in same column on 5th.Mar.-2014 title: Stop Corporate Match Fixing : Apply Cricket Swaraj.
So long we have failed to question the base of a business paradigm that we must not expect a breakthrough and miracles. In the conventional system top leaders are expected to showcase all answers and solutions.
What if this does not work?
We often fail to encourage change because it directly shakes our blind trust, faith, beliefs and prejudices. Right from our childhood, we are programmed to escape from participating in deep experiences. We feel threatened to use simple enquiring tools like How! When! Why! Where! and so on. The nuts and bolts at the site of production and consumption need to be identified and this can help to generate black money Indigenous fund recycling monitored with strict regulations with more jobs is the only ways out.
Tax Havens-Why should we accept them ?
Helping less equals to transform into more equals can save the crisis. This is not a philanthropic business step but a long term human survival kit. It will ensure more productivity, sense of belonging, sharing, participation and `actual` consumption. If Africa and India is able to plug the weak production and sales format that allows such ongoing inhuman corruption how shall it honour the ink of its signature to UN Convention Against Corruption (UNCAC)? UNCAC clause (Article 51 & 52) has provision to help countries for recovery of hidden money in foreign lands.
Solutions need to be rescued at gut level. If a child’s trousers get caught in the wheel, the bicycle chain is rotated back and not forward.
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