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- 1. ST.BRITTOS COLLEGE ADAMBAKKAM CHENNAI-88 BLACK MONEY
- 2. Black money is: the currency used in black economy. the
proceeds, usually received in cash, from underground economic
activity. earned through illegal activity and, as such, is not
taxed. What is Black Money? Fact: Once the huge amount of black
money and property comes back to India , the entire foreign debt
can be repaid in 24 hours.
- 3. Gambling Undervaluation of Asset and Over Valuation of
Liabilities False Income Statement Drug trafficking Weapons trading
Terrorism Prostitution Selling counterfeit or stolen goods Selling
pirated versions of copyrighted items such as software and musical
recordings and Through any other act forbidden by law. Sources of
Black Money. Fact: After paying the entire foreign debt from
retained black money, we will have surplus amount, almost 12 times
larger than the foreign debt.
- 4. To be at a safer side the recipients of the black money
moves their black income by using the following two sources: By
Hawala system. Depositing in Swiss Bank. Movement of Black Money.
Fact: If the surplus amount after retaining the black money is
invested, the amount of interest earned will be more than the
annual budget of the Central government.
- 5. Hawala: also known as hundi origins in classical Islamic law
an informal value transfer system based on the performance and
honour of a huge network of money brokers. no promissory instrument
Hawala System. Fact: After retaining black money even if all the
taxes are abolished, then also the Central government will be able
to maintain the country very comfortably.
- 6. 1854 - Swiss Bank Corporation(SBC). 3rd largest in
Switzerland with over 300 billion CHF(Converted Swiss Francs) of
assets and 11.7 billion CHF of equity. 1998 - SBC merged with UBS,
the largest bank in Europe and the 2nd largest bank in the world.
The company's logo - three keys - Confidence, Security and
Discretion. Swiss Bank. Fact: If the black money is retained the
Government will have enough money to run the country for 30
years.
- 7. Black money and Corruption. Black money & Corruption are
two sides of the same coin. Dishonest Industrialists, Scandalous
Politicians and corrupt officials have deposited in foreign banks
in their illegal personal accounts a sum of about $1500 billion.
Fact: If the total Black Money is recovered then every Indian can
have one Tata Nano car and every new born baby can be gifted with
the same for next 1 year.
- 8. Top 5 countries generating Black Money. INDIA $1,456 BILLION
(NEARLY 76,00,000/- CRORES) RUSSIA $470 BILLION U.K. $390 BILLION
UKRAINE $100 BILLION CHINA $96 BILLION Fact: If black money is
brought home and added to our GDP of Rs 55 lakh crore our new GDP
would become Rs 363 lakh crore, we will become No. 2 after USA in
terms of GDP.
- 9. Total Black Money in economy? Swiss bank revealed India has
more money than rest of the world. The second highest, Russia has 4
times lesser black money as compared to India. U.S. is not even
there in the counting in top five. India has more money in Swiss
banks than all the other countries combined.
- 10. Top 5 scams in India. 2G Spectrum Scam. Commonwealth Games
Scam. Telgi Scam. Satyam Scam. IPL Scam.
- 11. Known as Indias biggest scam. Person responsible was
telecom minister Mr. A. Raja. Evaded norms at every level and gave
fictitious licenses. Amount involved in the scam: 1.76 lakh crores.
2G Spectrum Scam.
- 12. Indians hang their head in shame on global front.
Revelations by the Central vigilance council: Discrepancies in
tenders. Payments to non-existing parties. Willful delays in
execution of contracts. Over inflating price of sports equipment.
Misappropriation of funds. Person responsible: Mr. Suresh Kalmadi.
Amount involved in the scam: Rs. 35000 crore. Commonwealth Games
Scam.
- 13. Abdul Karim Telgi mastered the art of preparing fake stamp
papers. Sold them to various banks and other financial
institutions. These stamps were sold across 12 states. Various
government departments were involved in the scam. Person
responsible: Abdul Karim Telgi. Amount involved in the scam: Rs.
20000 crore. Telgi Scam.
- 14. The scam that shattered the investors: The books of
accounts were fudged. Scam took place for more than a decade.
Revenues and profits were inflated. Shareholders were kept in the
dark. Biggest corporate fraud. Person responsible : Mr. Ramalingam
Raju. Amount involved: Rs. 14000 crore. Satyam Scam.
- 15. The Shame behind entertainment: The Indian Premiere
League(IPL) was considered as the best form of entertainment in the
country. But slowly its darker side emerged. IPL commissioner Mr.
Lalit Modi and external affairs minister Mr. Shashi Tharoor were
the persons involved. Claimed to have stakes in many IPL teams. The
IPL Scam.
- 16. High rates of taxes. Complicated Tax-laws. Numerous
controls, licenses and other governmental regulations. Lack of
control by the government. Lack of awareness among public. Major
reasons for generation of Black Money. Fact: Fact: Total black
money of Indians in other tax haven countries (60 countries) is Rs
158 lakh crore. total black money of Indians outside India
(100+158) is Rs 258 lakh crore.
- 17. Consequences of Black Money. Poverty. Inflation. Reduces
Development. Illegal transfer of funds from India to other
countries. Fact: In India more than 450 million people live below
the poverty line.
- 18. Amnesty Scheme by the govt. Simplify/Rationalize tax laws.
Reduce red tapism. Use technology for economic intelligence.
Co-ordination with other countries. Stringent laws to curb money
laundering/corruption. Creation of awareness among students on the
evil of black money. Regulation on election spendings and donation
to political parties/ organizations. Measures to be taken to reduce
Black Money. Fact: Every year almost 80000 people travels
Switzerland. Out of these around 25000 travels frequently. Those
who travel frequently might be travelling for some reasons, this
should be investigated.
- 19. Black money has created a big black hole in Indian economy
& the entire burden is beared by the common people of India. To
stop corruption which creates black money, we the people of India
have to come forward to fight against corruption. Conclusions.
- 20. Thank You. Presented By- N.MOHAMED MARJUK (B.COM(C.A))