US$300-600bn move out of EMs via illegal routes: Jayant Sinha

India Infoline News Service | Mumbai | September 03, 2015 08:26 IST

The Indian Government has taken a series of steps, including enactment of the black money law, to deal with unaccounted overseas assets, Sinha said.

Minister of State for Finance Jayant Sinha said on Wednesday that as much as USD 300-600 billion moves out of the developing countries through money laundering and other illegal routes.

"Illicit financial flows mean that the money that actually is black money, and it is then sent over to tax havens. And in India, a lot of it is happening through trade-based money laundering, over-invoicing or under-invoicing, and a variety of other ways. And then money is leaving the country simply through hawala channels," Sinha said at a UN function.

The Indian Government has taken a series of steps, including enactment of the black money law, to deal with unaccounted overseas assets, he said.

Through transfer pricing mechanism, multinationals move profits to low tax countries and tax havens, thus reducing their tax liability, Sinha said.

Illicit financial flows are estimated to be much higher than those going out by transfer pricing and capital gains, Sinha added. 
 

Advertisements

  • FREE Demat A/c + Rs.2000 Cashback ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.
welcome to iifl