What Is Black Money?
Black money is money earned through any illegal activity controlled by country regulations. Black money proceeds are usually received in cash from underground economic activity and, as such, are not taxed. Recipients of black money must hide it, spend it only in the attempt to give it the appearance of legitimacy through money. What's App, Call:- Black Money (+27) 67-807-2275 or Email:- blackmoney20200@gmail.com
How Black Money Works
In its simplest form, black money is money on which tax is not paid to the government. A store that accepts cash for its merchandise and does not issue receipts to its customers will be transacting in black money, as it would not pay tax on the unaccounted sales. Furthermore, a property buyer who purchases land valued at $200,000 from which $50,000 is reported on the books and $150,000 is paid under the table to the seller, will have transacted in black money worth $150,000. The sellers in both examples have earned money from legal sources but evaded taxes
The portion of a country’s income that is tied to its black economy affects the economic growth of the country. The black economy constitutes a financial leakage, as tax income from unreported earnings is not received by the government, thereby constituting a loss of revenue. In addition, as these funds rarely enter the banking system, economies are stifled because money remains hidden that otherwise could be used by banks to stimulate the economy by funding small business owners and entrepreneurs.
Furthermore, black money causes the financial health of a nation to be underestimated. As it is almost impossible to estimate the amount of black money in any economy, unreported earnings cannot be included in a country’s gross national product (GNP) or gross domestic product (GDP). Thus, a nation’s estimates of savings, consumption, and other macroeconomic variables would be misleading, with the inaccuracies adversely affecting planning and policy making. What's App, Call:- Black Money (+27) 67-807-2275 or Email:- blackmoney20200@gmail.com
Examples of Laundering Black Money
Most black money holders attempt to convert the money into legal money, also known as white money. This is typically done through money laundering, which can be attempted in a number of ways. Consider a consumer who pays the sales tax on retail goods but does not actually purchase the merchandise. If the consumer receives a sales receipt and is reimbursed for the price of the goods, the reimbursement is considered black money. The seller counters this effect by selling the merchandise to another customer, who purchases the item but does not receive a receipt for the purchase.
Money laundering can also be perpetrated using the hawala system of transactions. The hawala system is an informal and cheap method of transferring money from one region to another without any actual money movement and without the use of banks. It operates on codes and contacts, and no paperwork or disclosure is required. If a money launderer in the U.S. decides to send $20,000 through a hawala dealer to a recipient in India, the exchange rate agreed upon will be fixed at a significantly higher rate than the official rate.
Tax havens, such as Switzerland, offer anonymity to money launderers due to the lax policies on funds deposited in their countries. Other outlets for black money include real estate, jewelry, informal and cash economies, bullion investments, and more. What's App, Call:- Black Money (+27) 67-807-2275 or Email:- blackmoney20200@gmail.com
Black money stashed outside
The Standing Committee on Finance wants the Parliament to simplify and rationalise direct tax laws to prevent the generation of unaccounted wealth
Unaccounted wealth outside the country held by Indians was estimated in the range of USD 216.48 billion to USD 490 billion over various periods between 1980 and 2010, according to three separate studies conducted by three premier institutes: NIPFP, NCAER and NIFM.
The studies conducted by the three institutes have found that the sectors where unaccounted income is found to be the highest included real estate, mining, pharmaceuticals, pan masala, Gurkha, tobacco, bullion, commodity, film, and education, said a report of the Standing Committee on Finance tabled in the Look Sabha on Monday.
There are no reliable estimates of black money generation or accumulation, neither is there an accurate well-accepted methodology for making such estimation, according to the Committee’s report, titled ‘Status of Unaccounted Income/Wealth Both Inside and Outside the Country: A Critical Analysis’.
“All estimates depend upon the underlying assumptions made and the sophistication of adjustments incorporated. Among the estimates made so far, there is no uniformity, or consensus about the best methodology or approach to be used for this purpose,” it said.
Amount not specified. As per the report, the National Council of Applied Economic Research (NCAER) study said that unaccounted wealth accumulated outside India is estimated to exist between USD 384 What's App, Call:- Black Money (+27) 67-807-2275 or Email:- blackmoney20200@gmail.com
How To Use Black Money
Africa has been responsible for approximately $210 billion worth of illegal financial movements between 2004 and and 2013 – one of the highest among emerging economies.
This is according to a new report from research group, Global Finance Integrity (GFI), which tracked illicit financial flows over that period.
Illicit financial flows are illegal movements of money or capital from one country to another. The movement of money is classified as an illicit flow when the funds are illegally earned, transferred, and/or utilised.
These movements include trade mis-pricing, bulk cash movements, hawala transactions, smuggling and more.
According to the GFI, illicit financial flows have surged to $1.1 trillion (R16 trillion) in 2013 from $465 billion (R6.8 trillion) in 2004, calling the practice “the most damaging economic problem faced by the world’s emerging and developing countries”.
Illicit financial flows averaged a “staggering” 4% of the developing world’s GDP in 2013, and Sub-Saharan Africa suffered the largest illicit financial outflows, averaging 6.1% of GDP.
South Africa’s illicit flows averaged $20.9 billion (R305 billion) over the period (6% of 2013’s GDP), with a cumulative tally of $209.2 billion (R3.05 trillion).
Notably, South Africa made the largest jump from the tenth to the seventh spot, surpassing Nigeria to become the largest IFF source country on the African continent. Black Money is Ross Macdonald at his finest What's App, Call:- Black Money (+27) 67-807-2275 or Email:- blackmoney20200@gmail.com
Black Money (Vintage Crime/Black Lizard)
One of the victims in a so-called black dollar scam was shocked to find that three lock-up safes supposedly filled with US dollars instead contained black paper.
One of the victims in a so-called black dollar scam was shocked to find that three lock-up safes supposedly filled with US dollars instead contained black paper, a Cape Town court heard on Friday.
Police officer Wilfred Mentoor told the court he and police captain Siyaya Patrick Siyale had been investigating the scam, and previously called at a home in Villiersdorp where another victim had three similar lock-up safes, also containing pieces of black paper.
Siyale, 51, and Mentoor, 29, have pleaded not guilty to charges of extortion (blackmail), corruption, theft, and defeating the ends of justice.
They allegedly demanded money from victim Nicodemus Solly Moeng, in order not to arrest Moeng for his involvement in the scam.
They are on trial in the Bellville Specialised Commercial Crime Court before Magistrate Sabrina Sonnenberg.
Moeng, at the time the president of the French South African Chamber of Commerce and Industry, was "very angry" when he discovered that he was victim of the scam, Mentoor told the court.
Earlier, Moeng told the court how he had been approached by Congolese men involved in the black dollar scam. He said he had done the "most ridiculous things" at their request. What's App, Call:- Black Money (+27) 67-807-2275 or Email:- blackmoney20200@gmail.com
How To Clean Black Money Using SSD Chemical Solution
The National Institute of Financial Management (NIFM) said results of estimation suggest that total illicit outflow at the current value (including opportunity cost) from India in the reform period (1990-2008) stands at Rs 9,41,837 crore (USD 216.48 billion). Illicit outflows from the country are estimated on an average at 10 per cent of the estimated unaccounted income.
The National Institute of Public Policy and Finance (NIPFP) said that during 1997-2009, illicit financial outflows have been in the range of 0.2 per cent to 7.4 per cent of Gross Domestic Product (GDP).
In March 2011, NIPFP, NCAER and NIFM were asked by the Finance Ministry to conduct studies to assess and survey unaccounted income and wealth both inside and outside the country. “It appears that the reliable estimation of unaccounted income and wealth inside and outside the country is a difficult task, this inference is validated by the widely varying estimates of the unaccounted income arrived at by these three institutes. The Chief Economic Adviser has opined that there is no scope for arriving at a common estimate of unaccounted income by combining estimates from the three reports (studies),” the parliamentary panel’s report said.
The panel, headed by M Veerappa Moily, had submitted its report to the Lok Sabha Speaker on March 28, well before the dissolution of the 16th Lok Sabha. Following the general elections, 17th Lok Sabha has been constituted.
The recommendations
The committee noted that as only a “limited number of stakeholders” could be examined by it, owing to the paucity of time, “this report might be considered as a preliminary report”, and pending examination of other witnesses including non-official witnesses or experts on the subject and after evidence replies of the finance ministry which are awaited.
“In the meantime, the Committee would expect the Ministry of Finance (Department of Revenue) to continue their efforts with greater vigor to unearth and bring to book unaccounted income/wealth both within and outside the country including follow-up action on the seven reports of the Special Investigation Team (SIT) constituted on black money as well as the three study reports on estimation of unaccounted money,” it said.
The Committee, the report added, would thus expect more fruitful outcomes on this count, both in terms of much wider tax base as well as actual tax yield.
In the context, it also desires that the long-delayed direct tax code should also be finalized at the earliest and reintroduced in Parliament with a view to simplify and rationalize the direct tax laws in the country. What's App, Call:- Black Money (+27) 67-807-2275 or Email:- blackmoney20200@gmail.com
