Two years ago, on a balmy afternoon in Kolkata, crisp currency notes rained down from the sky.
Well, not really, but for many onlookers, the windfall seemed heaven-sent. The dazzling dance of cash started from the 15th floor of a decrepit office building in Chowringhee, one of the city's main thoroughfares.
Beggars on the street scurried about, treating themselves to fistfuls of money. Some were knocked down by thick bundles of cash hurtling from above, before white-coated policemen cordoned off the area.
As it turned out, the money was not a handout from heaven. Executives at an engineering company in the building had caught wind of an imminent raid by income-tax authorities. In a last-minute effort to escape punishment, they began dumping bundles of bills from an unreported stash of 150 million rupees (Dh12.2m).
This incident is hardly an aberration.
In India, as in a number of other south Asian countries, tax evasion is endemic, starving the government of revenue and retarding the pace of economic growth and social development.
This has also spawned a shadow economy, with a large number of delinquent taxpayers believed to be hiding wealth - what is known as "black money".
India's finance ministry estimates that the off-the-books economy totals about 40 per cent of the country's GDP or about US$500 billion (Dh1.83 trillion) annually.
Global Financial Integrity, a think tank based in Washington, estimates that between 1948 and 2008, Indians transferred nearly $462bn of ill-gotten wealth overseas. The figure does not, however, account for the entire cost of corruption in India, as some of it is kept onshore.
Most of the black money in overseas banks is believed to be public funds siphoned off by corrupt politicians, bureaucrats and businessmen.
In recent months, various civil rights activists - including the ochre-robed yoga guru Swami Ramdevand the Gandhian reformer Anna Hazare - have orchestrated high-decibel protest campaigns against black money, galvanising millions of supporters.
The protesters have criticised the government's tepid approach to corruption and have demanded it act aggressively to bring back black money parked in bank accounts abroad.
Swami Ramdev demanded that the government introduce stiff punishment, even the death penalty.
Many considered that suggestionextreme, but the authorities are considering making tax evasion a criminal offence instead of a civil violation.
Prakash Chandra, who heads India's Central Board of Direct Taxes, suggested that exemplary punishment would be a strong deterrent.
"The idea is to identify loopholes and plug them, wherever needed," Mr Chandra said. "If we still find deficiencies, then we will examine the possibility of introducing a new law."
The government estimates that if India's shadow economy were integrated into the official GDP - with what is now undeclared income being taxed at the official rate of 30 per cent - 7.5tn rupees of revenue would be realised, more than twice the fiscal deficit.
Last year, the government increased its social spending to $47bn, taking the fiscal deficit to a 16-year high. The landmark rural jobs scheme - which promises every rural family 100 days of employment - costs 1 per cent of GDP. The food security bill - which promises to put food on every table - costs $2bn.
These schemes are crucial, analysts say, in fighting hunger and malnutrition, among the estimated 800 million Indians who live on less than $2 a day. In the 2009 Global Hunger Index, compiled by the International Food Policy Research Institute in Washington, India ranked 65th among 84 nations, well below countries such as North Korea and Zimbabwe. But the government is struggling to fund these schemes.
Last year, in a bid to recover money hidden abroad, the government renewed efforts to revise its tax treaties with at least 25 countries and renegotiate agreements with 51 others. Most of the countries with which India sought to renegotiate tax treaties are low-tax or no-tax nations, and most foreign investment in India is routed through these countries.
But many analysts argue that the crackdown on economic offenders must begin at home.
Only 3 per cent of India's 1.21 billion people pay income tax. In the past, India has tried to combat tax evasion by requiring the use of a permanent account number (Pan) for all major financial deals. Pan is a 10-digit taxpayer identifier. But in India, many transactions, especially those related to property, are conducted in cash and are unlikely to be reported.
The remedy does not lie in introducing new laws, some analysts say.
"The law is already there," says Rahul Garg, the executive director for tax and regulatory services at PricewaterhouseCoopers India. "What is needed is the will to implement it."
Under the existing income tax law, introduced in 1961, tax evasion is punished with imprisonment ranging from three months to seven years. Offenders also face heavy fines. Seven-year sentences are rare.
business@thenational.ae
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Sholto Byrnes on Myanmar politics
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5
BLACK%20ADAM
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Players Selected for La Liga Trials
U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian
Name: Yahia Iraqi (Malaga)
Position: Left Wing
Nationality: Morocco
Name: Mohammed Bouherrafa (Almeria)
Position: Centre-Midfield
Nationality: French
Name: Mohammed Rajeh (Cadiz)
Position: Striker
Nationality: Jordanian
U16 Age Group
Name: Mehdi Elkhamlichi (Malaga)
Position: Lead Striker
Nationality: Morocco
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
ENGLAND TEAM
Alastair Cook, Mark Stoneman, James Vince, Joe Root (captain), Dawid Malan, Jonny Bairstow, Moeen Ali, Chris Woakes, Craig Overton, Stuart Broad, James Anderson
Company%20Profile
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Company%20profile
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KILLING OF QASSEM SULEIMANI
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
Results
2.15pm: Handicap Dh80,000 1,950m
Winner: Hello, Tadhg O’Shea (jockey), Ali Rashid Al Raihi (trainer).
2.45pm: Handicap Dh90,000 1,800m
Winner: Right Flank, Pat Dobbs, Doug Watson.
3.15pm: Handicap Dh115,000 1,000m
Winner: Leading Spirit, Richard Mullen, Satish Seemar.
3.45pm: Jebel Ali Mile Group 3 Dh575,000 1,600m
Winner: Chiefdom, Royston Ffrench, Salem bin Ghadayer.
4.15pm: Handicap Dh105,000 1,400m
Winner: Ode To Autumn, Patrick Cosgrave, Satish Seemar.
4.45pm: Shadwell Farm Conditions Dh125,000 1,200m
Winner: Last Surprise, James Doyle, Simon Crisford.
5.15pm: Handicap Dh85,000 1,200m
Winner: Daltrey, Sandro Paiva, Ali Rashid Al Raihi.
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
Lowest Test scores
26 - New Zealand v England at Auckland, March 1955
30 - South Africa v England at Port Elizabeth, Feb 1896
30 - South Africa v England at Birmingham, June 1924
35 - South Africa v England at Cape Town, April 1899
36 - South Africa v Australia at Melbourne, Feb. 1932
36 - Australia v England at Birmingham, May 1902
36 - India v Australia at Adelaide, Dec. 2020
38 - Ireland v England at Lord's, July 2019
42 - New Zealand v Australia in Wellington, March 1946
42 - Australia v England in Sydney, Feb. 1888
Company%20Profile
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MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
Can NRIs vote in the election?
Indians residing overseas cannot cast their ballot abroad
Non-resident Indians or NRIs can vote only by going to a polling booth in their home constituency
There are about 3.1 million NRIs living overseas
Indians have urged political parties to extend the right to vote to citizens residing overseas
A committee of the Election Commission of India approved of proxy voting for non-resident Indians
Proxy voting means that a person can authorise someone residing in the same polling booth area to cast a vote on his behalf.
This option is currently available for the armed forces, police and government officials posted outside India
A bill was passed in the lower house of India’s parliament or the Lok Sabha to extend proxy voting to non-resident Indians
However, this did not come before the upper house or Rajya Sabha and has lapsed
The issue of NRI voting draws a huge amount of interest in India and overseas
Over the past few months, Indians have received messages on mobile phones and on social media claiming that NRIs can cast their votes online
The Election Commission of India then clarified that NRIs could not vote online
The Election Commission lodged a complaint with the Delhi Police asking it to clamp down on the people spreading misinformation
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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