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Morris’s leak explained: how the old foreign funds allowed the Indians to avoid taxes

Morris's leak explained how the old foreign funds allowed the Indians to avoid taxes

Just as the case of tax evasion by large companies, which started two years ago due to Panama’s paper leak, has revealed a series of new documents leaked from the Mauritian law firm, how companies are capitalized in India and other countries Taxes were being levied on the profits.

The way to work – which can be according to the book – flourishing on the mysterious financial laws of Mauritius, which is designed to facilitate change in a country for foreign firms.

large amounts of “tax treaties” to other countries With the country enjoyed and the desire to allow foreign companies with some companies and not to Mauritius to stop their headquarters and shell companies in the island state.

What is Mauritius Leek

Based on the cache of more than 200,000 confidential records from a foreign law firm located in Bermuda, the Mauritian office of Connor Dell and Burman.

Which was reached by the Union of International Journalists, Mauritius explains how the former French colony was in a thriving financial center Changed At least on the cost of its very poor African neighbors and other developing countries including India.

There is a long list of financial institutions and individuals in the documents, who have tried to take advantage of tax rules in Mauritius while avoiding taxes in Egypt, Mozambique, Uganda and India among other countries.

The names of international companies such as Wal-Mart, Whirlpool, Apollo, Jindal Steels, Religare and others are in the record.

Connors Del and Burman: Company is at the center of dispute

The law firm, which includes many Fortune 500 companies as clients, promotes corporate tax concerns and protects the private property. Mauritius is useful in documents accessed by IFJ Investigation guides for anyone considering a plan to avoid tax using laws.

According to The Indian Express, the law firm claims to have opened the GBC1 (tax business company in Mauritius, tax resident in Mauritius) within 10 working days for the annual license fee of $ 1,750.

The three founders – James Reginald Conders, Nicholas Baird Dale and James Eugène Burman – all were horsemen and were in public in Bermuda.

The company operates offices worldwide including Cayman Islands, Hong Kong, London and the British Virgin Islands. The company is widely credited with the establishment of the world’s first offshore company.

According to the ICIJ report, in the history of Connors published in 1998, an attorney was quoted describing a specific customer, who “likes to spend $ 10,000 on legal bills instead of paying $ 5,000 to Uncle Sam is.”

Why has Mauritius preferred tax haven

The investigation of ICIJ found that the island state, which sells itself as a “gateway” for developing countries, has two main points of sale: tax rates and a “tax treaty” with 46 countries, Most of which are poor.

These tax treaties, the reports state are highly unbalanced and are favored by most companies and Mauritius, who make conversions by hosting more and more of these companies.

As a resident company in Mauritius, many Western companies benefit from a very low tax rate in the country – up to 3 percent – and Mauritius receives a special legal status from the government, which allows them to make tax between Mauritius and other countries.

Treaties benefit

The process of turning Mauritius into a haven for foreign institutions, most of which established a base in the country for “tax reasons”, started in the 1990s.

The then Finance Minister Ram Sethanin noted that Luxembourg, Switzerland, Hong Kong and other countries were more ambiguous and working in low-income gateways for nearby rich countries had increased in financial powers.

Mauritius should do the same, to present himself as a stable and corruption-free bridge for Africa and other less developed areas.

He asked Mauritius Parliament to present a bill in 1992, “It is likely to explore new routes and find new markets. This would make the island’s first shell companies possible, and some companies have zero tax on profits and capital gains Will be allowed to pay. ”

An opposition member said objecting that the bill will at least create the impression that Mauritius is benefitting at the expense of its poor neighbors, ICIJ has said.

But the bill laid the foundation of several domestic laws and tax treaties, pushed by Western lobbyists, signed by Mauritius neighboring countries in hopes of attracting foreign investment to create jobs, even many tax projects Also on the tax tax used to financing

What are the tax treaties?

From the 1920s, “double taxation agreements” or “tax treaties” were adopted as a means of protecting the companies operating with international operations twice from taxation with the same treatment.

However, over time, countries started retreating treaties which favor the very rich countries.

Indian IT industry is a key stakeholder in strengthening Indo-US relations

Indian IT industry is a key stakeholder in strengthening Indo-US relations

India’s information technology industry is one of the key stakeholders in increasing trade relations between India and the United States because it contributes to the global operations of American companies and contributes to the creation of thousands of jobs in the United States, Indian The envoy said Harshavardhana Shringla said.

Shrungala on Tuesday said that Indian IT companies have invested billions of dollars in many US states.

The Indian Ambassador to the United States said, “Indian IT industry is a key stakeholder in promoting and strengthening strong bilateral trade relations between our two countries.”

He said that Indian IT companies have contributed to the competition of global operations of American companies.

“By doing so, he supported hundreds of thousands of jobs through direct, indirect and induced jobs in the United States.”

According to estimates, Indian IT companies invested more than $ 50 billion in the United States.

He said that companies are deeply rooted in the roots of American society and their contribution leaves the economy far behind.

Shrungala said that the movement of high skilled persons and Indian professionals in the United States through programs like H-1B was a mutually beneficial partnership.

He said there was a shortage of 2.4 million high-tech workers in the United States today.

In addition to the very low unemployment rate of less than three percent, there is a shortage of people with the necessary expertise and experience in this field.

He said that many Indian companies had promised to hire more people in the United States.

“For example, Infosys has programmed 10,000 US citizens in its operations, to campus on campus, to train and to equip the advanced technology profession, which they will join.”

In his commentary, Shringla praised the passing of a bill recently by the House of Representatives, in which green card is proposed to increase the maximum amount for each country.

This move is likely to benefit Indian IT professionals in the United States, he said: “This is an important initiative.”

This program launches new IHS market report on H-1B visas and global IT services industry.

The report includes a specialist analysis of issues faced by companies with the visa program and the discovery of industry, government workforce and STEM education initiatives.

NASCOM president Debjani Ghosh said that India’s technology companies contribute about $ 78 billion in sales, and that about 170,000 jobs are created directly by India by these technology companies, while about one million jobs were created indirectly. Are.

“About $ 16.3 billion wages are paid by these Indian-based companies in the US, while NASCOM contributes about 185 billion dollars in India’s figures, we directly contribute $ 28.2 billion and $ 7.7 billion in US GDP In the context of government taxes and federal taxes in the United States.

Archit Gupta, founder and CEO of ClearTax, says that the EPF provides interest to individuals by deducting the contribution under Section 80C of the account.

However, an employee can withdraw his employees, even if the period of employment is less than five years (60 months).

But remember, Income Tax (TDS) is deducted. However, after the five-year continuous service, when the PF is withdrawn, income tax will not be deducted. However, if PAN is provided in such cases, then TDS is deducted 10%.

Why Avoid Early Withdrawal of PF

The EPF also offers other benefits such as the use of money to buy equipment in case of natural and natural disaster damage, which employees can use as per your requirement.

The member also has the option to nominate family members to receive the money after his death and it should be aware that after removing the funds, it is only legal to withdraw money when he is unemployed for at least two months.

Be there The primary objective of the EPF is long-term investment and should be used only when the last option is available to the employee.

Why Kaushik Basu’s assessment of GDP debate and his tips

Why Kaushik Basu's assessment of GDP debate and his tips

Famous economist Kashik Basu attended a discussion on GDP data (whether India’s GDP figures are correct or not?) On the basis of the research done by CEA Arvind Subramanian on the alleged statistics of overstating GDP data, the previous findings hurt.

In his Indian Express book, Basu explained his thoughts on this subject. The essence of Basu’s article is that he does not think “India has a clear flaw in the GDP calculation” and “the difference between economic indicators and GDP data shown by Subramanian” reveals the underlying turmoil in the economy. ”

The problem here is that there is no clarity in Basu’s argument. After analyzing 17 major economic indicators, Subramanian also said that the weakness seen in the economy after 2011-12 is not linked to higher GDP data under the new series.

Subramanian said that the GDP growth should be at least 2.5 percent. This is a clear drawback in the calculation process, for example, did not adjust the real development scenario on the ground.

Basso’s saying means that he does not think there is a clear problem in calculating GDP figures but he acknowledged that the supermarket paper only showed weakness of the economy during the disputed period? The fact is that there was already a mismatch.

By saying that the economy has started to slow down, there are some important recommendations for Narendra Moody’s government in Paso “to avoid short term risks and to promote sustainable sustainable development?”

General recipes – Higher family investments, payment of infrastructure, more emphasis on education, etc. – Recommended from time to time by economists.

But with one exception – Pasha proposed to mitigate roadmap for financial consolidation.

“We should be prepared to make a significant increase in the fiscal deficit for a year or two, this will increase the demand for goods and become an urgent need for Indian companies and farms,” ​​Basso wrote, “If additional expenditure is poor and agricultural It is directed in the area, those who are in dire need of it. ”

Basso’s proposal has a great deal of meaning. At a time when the economy is falling on all fronts, there is no point in sticking to the fiscal deficit. But, at the same time, it was not always said Basu.

In 2013, when he was Chief Economic Advisor (CEA) in the United Progressive Government (UPA), Basso argued in favor of staying away from the roadmap even during the recession. He did not recommend this solution at that time.

No consideration has been made yet to review the target of disability. You had to keep in mind that in industrialized countries, due to the vertical trend everywhere, discussion about recession in financial consolidation is discussed.

In other words, Basso wants that the government temporarily retain the path of financial knowledge and spend more to encourage demand.

But the other side is that the Fiscal Responsibility and Budget Management Act (FRBM), which was designed to bring financial caution to the economy, lost its full significance.

India has already wandered from the road map of fiscal deficit for at least three years and it will have implications for fiscal and monetary policies.

If this happens, then India has always failed to fulfill the obligation of fiscal deficit under the FRBM. It will raise some unresolved questions about the country’s commitment to fiscal conscience.

FRBM grew up in 2003 to make the government accountable for the sound management of its finances, but has not had much success yet.

This act was amended in 2016. The committee has taken a path to reduce the fiscal deficit by 3 percent in the years after 2020.

Of course, the law provides some scope for the central government to deviate from the deficit target; For example, if there is a serious financial crisis in the country due to drought, but the question is whether we have already reached this point?

Further reducing the financial losses, the MPC will not be happy with anything and can leave some dissatisfied faces in the committee about the government’s financial commitment.

This interest can be reflected in decisions that in turn affect development. Overall, the GDP failure and Basu’s evaluation of the drug to cure the economic downturn is confusing and can disturb the MPC.

Despite the poor demand, prices of cars, two wheels are in the north

Despite the poor demand, prices of cars, two wheels are in the north

Car companies and two-wheeler companies have been raising prices despite the negative demand for eight consecutive months, the demand for retail is increasing.

Companies say that the increase in duties on the imported parts announced in the Union Budget is necessary to increase the cost pressures and cost recovery at the expense of new security rules.

There is an increase in time when discount on certain models is high. For example, a large SUV is sold as a Honda CRV with a consumer offering of 2.5 lakhs, while the Toyota Corolla sedan can be purchased with a rudder of 1.6 lakhs.

Hyundai Motor India, the country’s second largest automaker, will increase prices by Rs. 9,200 on August 1. This increase will be effective in 10 models including Santro and Venue.

Hyundai’s domestic sales fell 7.3 percent to 42,000 units from the same month last year. In May, the domestic volume fell to six percent in April with a decline of 10 percent.

The continuous decline in sales comes despite the addition of new models for lineup like Santro and Venue. Electric SUV corner can survive till now.

TVS Motor increased prices

China’s TVS Motor Company, India’s fourth largest automobile maker, has so far raised prices twice. With the fall of 4 percent in May, despite the decline in domestic trade volume in June, despite an 8 percent decline.

TVS Motor Company Chairman and Chief Executive Officer KN Radhakrishnan said: “Our prices have increased by 0.1 percent in the first quarter, and in July, we have increased some prices, so it will be 0.3 percent.

In Mumbai, Hero MotoCorp said that the prices are expected to increase in the coming days. The company had increased prices by one percentage point earlier this month.

Bajaj Auto did not respond to questions.

The same thing applies to Mercedes-Benz

The luxury car industry is the most difficult due to the downturn, but it has not seen the high prices of office officials.

Mercedes-Benz, India’s largest luxury car maker, has decided to raise prices of three percent on a selected group by the first week of August.

E-Class and ML-Class announced a decline of 19% in volume during the January-June period of 6,561 units compared to 8,061 units in the same period last year.

As of July 1st, all vehicles will be equipped with standard remodeling seat belt, driver and rear parking sensor for side airbag, speed warning system, front passenger.

By 1 October, all vehicles will have to undergo a collision test, which includes full frontal, displacement and side effects, which make them eligible for the road. All these rules will increase the final cost of the vehicle. Other manufacturers are expected to follow the suit soon.

In addition, India is a beginning for the emission standards in phase VI, which is scheduled to start from April 1, 2020. This will also increase the prices, which will result in increased pressure on retail demand.

This unfavorable wind maintained sales in the second half of fiscal year 19.

From January to February, the level of inventory increased by 70-80 days.

Therefore, the sharp fall in March sales, indicates the reductions in production and transmission to rationalize inventory levels.

Car companies still see the possibility of darkness. According to the report of IIFL Holdings Limited, “Our investigation with the original dealers and manufacturers shows that the industry-wide final demand, which is weakening in the middle of the financial year 19, is still in progress. The plans do not help in improving the volume. ”

Regardless of the demand, such as good monsoon and festive season like positive monsoon, but there are other challenges too.

The prices of ABS and ABS will increase. Merchants are cautious about the approach for sales, as customers have already seen prices increase by 10-15% between 2017 and 2018.

This industry should also face new standards for BS-VI emissions, which is effective from April 2021. This will again see the need for the BS-IV IV inventory survey.

Howard advised on the methane parts of NY’s new climate law

Howard advised on the methane parts of NY's new climate law

Professor Bob Howarth in the New York State CLCPPA, played a major role in methane equivalent to carbon dioxide, which was signed by the Governor of the state Andrew Como on July 18 to become law.

Cornell affects New York state

David Howarth, professor of environmental and environmental science, said, “It is the most advanced law designed to avoid climate change, which any state has kept there.”

The New York State Senate and the Assembly approved the bill in June.

“New York did what another country did not do, and it is a precise calculation of methane as a major contributor to the greenhouse gases in the environment,” said Harth.

“This is the only way to define methane in the global warming equation, it is an important part of this new law and it puts New York in a leadership role.”

The New Climate Command and Community Protection Act was sponsored by Long Island Steve Englebright, D-4Wast. , Sponsored by Ithaca Assemblivar Barbara Lifton, D-125th District.

Lebanon said in a statement on its web site, “I think our country needs to move faster on the path to achieve zero zero emissions to help reduce the worst impact of climate change.

Law will ask New York:

85% reduction in greenhouse gas emissions by 2050;

Make up to 70% state electricity generated by renewable energy systems by 2030;
State-level power generation systems require zero carbon emissions by 2040.

The goal of the law is to buy at least 9 gigawatts of offshore wind power by 2035, by 2025, up to 6 gigawatts of photovoltaic power and 3 Gigawatts of state-level energy storage capacity by 2030.

The law is expected to provide 185 trillion British thermal unit, or BTU-2025, less than the forecast of the country’s energy use.

Hawkerath, a fellow faculty member at the Atkinson Center for a Sustainable Future, worked extensively with Anglebright, training to develop this law, with fossils world and Lifton.

More importantly, Howarth said, the state legislature first identified “equivalent to carbon dioxide” – for which methane is now eligible.

This legal definition is the amount of other GHGs in that mass, which produces global warming effect, similar to the specific mass of CO 2 over a period of 20 years.

Simply put, CH4 can now be compared to CO2, within a reasonable time frame to address the urgent need of climate change.

Hawth said that the 20-year deadline was important because methane – though it is very strong with carbon dioxide – started decaying after a decade.

“From a classic point of view, governments have compared carbon dioxide and methane over a period of 100 years,” he said. Until then Methane went away. But it reduces the importance of methane [in the short term] 7- or 8 times. ”

This new law formally supports the idea of ​​measuring methane in a period of 20 years. “It makes methane more important,” said Havrat.

The new state law also explains the greenhouse gases produced outside of New York for energy used in New York.

“The new law says that when we use natural gas in New York, if this natural gas comes from Pennsylvania, then we must keep in mind Methane emissions from Pennsylvania,” he said.

Most natural gas consumed in New York is a tornado rock gas in Pennsylvania. Before reaching natural gas New York, most gas and compressor stations emit more methane than this gas in Pennsylvania.

But by the time natural gas is not reached New York, the emission of greenhouse gases can be calculated and it may seem small.

“Under the old accounting in New York, Methane seemed trivial,” he said. “Under this new law, new accounting means that methane is now bigger than carbon dioxide – about 1.3 times more than carbon dioxide for natural gas consumption – when it is added, it is very strong.”

One of the initial plans of this law was published in an article in Energy Policy in 2013, titled “Feasibility Study of New York State Multipurpose Energy Infrastructure in Transforming Using Wind, Water and Sunshine.”

Jade Jacobson of Stanford University; Haughth Anthony Engrave, professor Dwight C. in honorary engineering. Boom He said that it is widely considered to be changed to green in New York.

Plant ecology and soil professor David Wolf said that the new law would attract the state’s renewable energy companies.

Wolf said, “New York State’s initiative on climate change can be called the most bold, most ambitious and most comprehensive.” “[This would] be an attraction for attracting renewable energy companies of New York and creating new jobs.”