1. SOP GROUP : 3
MBA’11 – B BATCH

2.  Income on which tax is not paid and deliberately
evaded
 Received in cash, from underground economic
activity
 Recipients spend it only in the underground economy
 Give the appearance of legitimacy through
illegal money laundering

3.  Illegal, Immortal, Antisocial Transaction
 Drug trafficking
 Weapons trading
 Terrorism
 Prostitution
 Selling counterfeit or stolen goods

4.  Money is parked in a safe place
 Details of the client is kept secret
 Switzerland, Mauritius, Seychelles, Bahamas, British
Virgin Islands, Bermuda, St Kitts, Cayman Islands
 Economy depends on Tourism and Banking

5. UBS
 Large integrated financial services company
located in Switzerland
 Third largest in Switzerland with over 300
billion CHF of assets and 11.7 billion CHF of
equity
 SBC merged with Union Bank of Switzerland to
form UBS
 Largest bank in Europe & Second largest bank in
the world.
 Headquarters in Bern

6. Three keys symbolizing
 Confidence
 Security
 Discretion

7.  Privacy – Non-disclosure of a/c holder’s identity
 Low Risk – From 1505, no war, stable economy
 High Security

8. INDIA $1456 BILLION
RUSSIA $470 BILLION
U.K. $390 BILLION
UKRAINE $100 BILLION
CHINA $96 BILLION

9. Vilas Rao Deshmukh Ahmed Patel

10.  Increased tax rates in India
 Prevalent corruption
 Higher rates of return in India
 Feeble law enforcement and slow legal system

11.  Country doesn’t get its legitimate revenues due to tax
evasion
 Macro planning & Welfare measures go distorted
 Affects foreign exchange reserve
 Affects common man
 Causes decrease in quality of public goods &
services

12.  Higher taxation &inflation
 Increase criminal activities
 Affects real capital income & national income
 Difficulty in the formation of monetary & fiscal
activity.

13.  SC not satisfied in Govt’s action
 Special Investigation Team appointed by SC
 13 member panel
 Headed by B P Jeevan Reddy, M P Shah

14.  Conversion into white money
 Voluntarily Disclosure of Income Scheme (VDIS)

15.  Restructuring tax system
 Severe punishments to errant tax officials
 Use electronic media and bank for money transfer
 Create awareness among people

16. Conversion of black money into white money is only
a short term measure, but it is the preventive
measures which can root out this evil permanently.