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Tax avoidance & evasion has become a norm

Posted in Featured, View Point

Published on October 15, 2021 with No Comments

Pandora Paper Leak have exposed the reality of many world leaders, rulers, businessmen and bureaucrats all over the world. Pandora papers are in a series of Paradise Papers and Panama Papers that came out in last decade.  Through this, the details of ownership of over 29,000 offshore companies and trusts have been exposed.  

Some of the names revealed in this are already tainted in cases of money laundering and tax evasion. This disclosure shows how the ruling and influential people are trying to convert  black money into white. Also the papers reveal that  how rich and powerful people are running parallel economy.
Among the hundreds whose names have surfaced include influential politicians, celebrities and religious figures and they have used the accounts of offshore foreign companies to evade taxes on trillions of dollars. Some of the methods adopted are hiding their investments through the purchase of large luxurious buildings, seaside property and land.
Prominent names in the disclosure of secret reserves include the King of Jordan, the Czech Prime Minister, Russian President Vladimir Putin, aides of Pakistani Prime Minister Imran Khan and a host of Indians who have made it large over a short period of time. Papers have also revealed about Russian President Vladimir Putin, Czech Prime Minister Andre Babis, Azerbaijan President Ilham Aliyev due to property purchases.
The names of close to three hundred Indians  and Pakistanis have come to the fore in this disclosure. Also, the papers throw a light on the socio economic inequality of the present world. World leaders may take a recourse  to the very fact that the curb on financial activities due to Corono crisis has increased  all over the world, the rich have become richer and richer. The crisis has not only snatched the lives of millions of people, but the gap between rich and poor has also widened due to the employment crisis.  According to a report by Britain's charity group Oxfam International, one thousand richest people in the world have made up for the loss caused by the Covid crisis within nine months. At the same time, it may take more than a decade for the world's poorest people to recover from the economic loss. The Corona virus has increased inequality by increasing the loss of life and economic crisis. It is said that during the lockdown, there has been an increase of thirty-five percent in the wealth of billionaires. The rich and powerful people in are depriving the country of revenue tax by using the accounts of foreign companies offshore in true sense.
It is a matter of concern that former British Prime Minister Tony Blair and his wife, who have campaigned against such economic activities, are accused of non-payment of stamp duty on property purchased for office in London. This is the money which is needed for better health, education, agriculture, environment and other big projects in any of the developing country facing a numerous other challenges. Governments around the world must conduct a comprehensive investigation into the financial activities of those exposed in the disclosures. Strict action can only work to check the tendency of accumulation and hiding of unaccounted money earned by wrong means.
In such a situation, when only the big powers are involved in the game of hiding black money and saving tax through foreign companies offshore, then who will take action against other economic offenders? Apparently these leaders are using public money to enrich their families.
 

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