Black Money and Tax Havens

Book excerpt: Just how much black money is there in India? Estimates vary from 10 per cent to 20 per cent of our GDP. Conservatively, Rs 15 lakh crore (10 per cent of Rs 150 lakh crore, our GDP in 2016-17). As for Indian money in tax havens around the world? Around Rs 65 lakh crore. Truly astounding figures. Black money or kala dhan is a topic that has elicited much debate in recent times. This has been mostly marked by mudslinging and name-calling, and the discussions that have ensued often have no basis in fact. While most people have a hazy notion of black money, only a few understand it in its entirety. The issue of tax havens is perhaps even more misunderstood. Most people fail to see the connection between tax havens and black money. Black Money and Tax Havens is the first work that discusses both of these issues in depth and offers a 360-degree view to the reader. In this work, R. Vaidyanathan provides the reader with a brief overview of black money-its generation, its estimates and how and why it is spirited away to tax havens. He also lays bare the danger that is posed to world financial well-being on account of the lack of political will to tackle these issues. A unique and timely work, this book packs in much information in an accessible manner.