Monday, April 04, 2016

The US and UK benefit from tax evasion, so it will stay.

Leaked documents from a law firm, Mossack Fonseca in Panama, have revealed the names of hundreds of people and firms hiding money through shell companies, created for that purpose. This is not the first time details of secret accounts have been revealed. There was the Luxembourg leak in 2014 and there was a leak of Swiss bank accounts last year. In this case, Mossack Fonseca seems to have taken details of customers like any bank in India, known here as Know Your Customer or KYC. As usual the list does not include any British or American names, so are we to understand that the British and Americans are all angels with halos around their heads? Which is not strange when we see that the most of the tax havens in the world are controlled by Britain or the US, including the City of London and the state of Delaware in the US. There are names of some Indians, including film stars and businessmen, but not a single politician or civil servant. How is that possible? This after all is the land of scams, worth trillions of rupees. Why is it that politicians and civil servants are never exposed? We can only speculate. They maybe hiding their wealth in real estate, in India or abroad, or they may have accounts in the US or UK, which maybe why our government allows Pakistan to send terrorists to kill Indians whenever they feel like, while the US uses drones to freely bomb terrorists in Pakistan. We will never know because they protect themselves behind the shield of the Official Secrets Act. Who decides what is secret? They do. An Indian Prime Minister dies in a foreign country in 1966 shortly after signing a deal with Pakistan, returning all the territory acquired by the sacrifice of our soldiers, and we still do not know the report of his autopsy or the circumstances of his death. Did he actually sign that agreement with Pakistan, or was his signature forged? More than seventy years after he vanished we learn that the Congress has been destroying files related to Netaji Subhash Chandra Bose. Who knows how we have been betrayed time and again. We get no returns for paying taxes. We see our money being used by politicians and civil servants go abroad for junkets, award themselves shameless pay rises and beg for large houses from the government, while distributing our money in handouts, to win elections. It is no wonder that people who have earned their money through talent and hard work, as Mr Amitabh Bacchan, should want to protect it. Why do the US and UK offer tax havens while lecturing the rest of the world? Maybe because it provides huge amounts of funds on which they pay no interest. It helps their own companies to avoid paying taxes. Legally, as Vodafone did when it avoided paying Rs 110 billion in taxes to India. As long as there are taxes there will be people advising on how best to avoid them. We will happily pay taxes if we have power. Till then the cat and mouse game will go on.

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