2. Income on which tax is not paid and deliberately
evaded
Received in cash, from underground economic
activity
Recipients spend it only in the underground economy
Give the appearance of legitimacy through
illegal money laundering
4. Money is parked in a safe place
Details of the client is kept secret
Switzerland, Mauritius, Seychelles, Bahamas, British
Virgin Islands, Bermuda, St Kitts, Cayman Islands
Economy depends on Tourism and Banking
5. UBS
Large integrated financial services company
located in Switzerland
Third largest in Switzerland with over 300
billion CHF of assets and 11.7 billion CHF of
equity
SBC merged with Union Bank of Switzerland to
form UBS
Largest bank in Europe & Second largest bank in
the world.
Headquarters in Bern
10. Increased tax rates in India
Prevalent corruption
Higher rates of return in India
Feeble law enforcement and slow legal system
11. Country doesn’t get its legitimate revenues due to tax
evasion
Macro planning & Welfare measures go distorted
Affects foreign exchange reserve
Affects common man
Causes decrease in quality of public goods &
services
12. Higher taxation &inflation
Increase criminal activities
Affects real capital income & national income
Difficulty in the formation of monetary & fiscal
activity.
13. SC not satisfied in Govt’s action
Special Investigation Team appointed by SC
13 member panel
Headed by B P Jeevan Reddy, M P Shah
14. Conversion into white money
Voluntarily Disclosure of Income Scheme (VDIS)
15. Restructuring tax system
Severe punishments to errant tax officials
Use electronic media and bank for money transfer
Create awareness among people
16. Conversion of black money into white money is only
a short term measure, but it is the preventive
measures which can root out this evil permanently.