Saturday, August 16, 2014

The parallel currency

Black money ---This term is used to mean money illegally generated, on which there no tax is paid, always kept in liquid form. Contrast this with White Money, which is legally got, taxes paid .   
There are situations, that if there is a requirement, the black money is converted into white, where taxes are , I am informed, are grossed up and paid. Some fictitious transactions are created and the conversion takes place.
Most educated people here know where the generation of Black Money is ……..
a.       Construction Business: It is a norm that 60% of cost of construction is paid in cash. (paid in black).  So why are the construction business not probed for  stopping this generation of black money ,extraction of black money. I don’t know the reason.  It is perhaps in some ones interest not to seriously probe these transactions. These are well oiled transactions, with all links neatly lined up and paid for to extinguish any loss….
b.      Another source -There are lots of franchisee who open expensive business, showrooms, etc. and stock them fully. And they do no business.  So how do these people fund their business (such as rentals, salaries, unsold stock, so on and so forth.)  It is clear that these business joints  are actually  front for something illegal, which also includes got black money
c.       Large infrastructure transactions, defense deals , (say anything large...)  have costs built up to cover black money transactions (generally commissions are paid in cash …..)
d.      A substantial amount of black money is generated in Private Business. Is this a surprise? The so called large business houses outsource these transactions where some expenses have to be incurred in Black… The consultants  who raise bills are paid for …………….
e.      So why are the authorities not going after these opportunists?
f.        Your guess for an answer is as good as mine
g.       Approximately over $1 trillion stashed as black money in large banks abroad
h.      It will be no surprise that most of these black money are owned by you know who......
i.         
j.        Given this situation, it is your guess and my guess as to whether this black money will indeed come back
k.       Black money has made wrong persons rich, who flout rules, laws. These people have not regard for law, civic sense. They move around in expensive high end cars. Do not go to work, their
l.         Black money is a result of the corruption ….. They contribute negative to economy ....hoping that Money will buy anything...
It 
I So it is all talk , no action......... Hopefully there will be a statesman who will get this back...............




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