When Modi led BJP started its campaigns for 2014 elections, it’s one of the aims was to bring back all the black money deposited in Swiss Bank. There is no doubt that Swiss banks are considered as one of the best places to securely deposit the black money. Black money is the money that is earned by an individual or a business entity through any illegal activity or violating the government regulations. Thus, on black money no taxes are paid which is illegal according to the country’s economical regulations.
Why Swiss banks are the destination of the black money?
Secrecy in the Swiss banks is so deep that the details of the funds cannot be disclosed in any way. Hence, they are considered to be the safest place for depositing the undisclosed and untaxed slush funds. Not only the businessmen but the politicians and the individuals also can easily deposit the tax evaded money in Swiss banks. The black money comes basically from terrorism, drug trafficking, weapons trading, prostitution, selling counterfeit or stolen goods or selling pirated items. The black money can thus be used for committing illegal activities on a large scale. Black money is not recorded so it leads to the loss of revenue for an economy. Hence it directly affects the economic growth of the country.
Steps to bring the black money back
Though, the governments of different countries including India have taken stringent actions to control the flow of money into the Swiss banks. Pressure from the world economies insisted the Swiss banks to reveal the money details asked by the different countries. It would be surprising to know that around 7,000 crore INR is deposited in Swiss banks. After Modi’s government came into force, attempts are done to disclose the total money deposited by the Indians in the Swiss banks. Under the Black money law, strict punishments shall be given to those who have parked their money in Swiss Banks for the purpose of tax evasion. Various MoU are also signed between India and Switzerland for the exchange of information related to the black money in Swiss Banks.