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New unit to identify black money hoarders in IBSA nations
- Even as the Centre has got “authentic information” from 10 countries, including Germany and Switzerland, on the black money stashed abroad by Indians, the government has set up an electronic centre unit in the Finance Ministry to deal with the unaccounted money issue in India, Brazil and South Africa (IBSA) countries.
- This new unit, functioning under the North Block, will deal with these governments in exchanging information on tax-evaders and black money in IBSA nations.
- The revenue authorities of IBSA countries will also study the latest trends in tax evasion, abuse of taxation laws and the trends that have emerged to avoid taxes.
- At present, India has Double Taxation Avoidance Agreements (DTAAs) with Brazil and South Africa.
SKS Microfinance hopes to come out of red by 2012-13
- SKS Microfinance has problems of recovery now in parts of West Bengal and Gujarat after slipping into crisis in Andhra Pradesh in October last year due to high interest rates on its lending and its alleged coercive practices in loan recovery.
- It has an outstanding credit of Rs.822 crore in the State.
- SKS claims its mission is to eradicate poverty by providing financial services to the poor. The company operates across these 19 states of India
- SKS Microfinance Limited" (SKS) is a non-banking finance company (NBFC), regulated by the Reserve Bank of India.
- SKS Microfinance is the largest MFI in India in terms of number of borrowers, number of branches and total loans
- Founded in 1997 by current chairperson Vikram Akula
Global action to curb tax evasion not enough
- With the annual illicit capital outflows from emerging and developing economies estimated at $725-810 billion, India on Wednesday pitched for greater global cooperation and alignment of taxation regimes to effectively tackle the growing menace of tax evasion and black money.
- 4th International Tax Dialogue (ITD) conference
- many common problems “are getting increasingly tied together” in the current phase of globalisation which has brought countries closer to one another, leading to a multifaceted integration of societies with a collective destiny.
- The Indian government adopted a five-pronged strategy to deal with tax evasion and black money
- The strategy includes joining the global crusade against black money and creation of a legislative and institutional framework to deal with illicit fund flows.
- Direct Taxes Code (DTC), which seeks to replace the archaic Income Tax Act, 1961 and thereby modernise the taxation regime, would be implemented from April 1, 2012.
- The reform measures, he said, were aimed at rationalisation of tax rates, broadening of the tax base, focussing on sunrise areas like transfer pricing and international taxation, and strengthening of the tax information exchange network.
