(Synopsis) Tax Havens - Bane or Boon PDF

 

   

INTER IN TERNA NATIO TIONAL NAL TAXA AXATIO TION N COVER PAGE 

 

SYNOPSIS 

SUBJECT :

International Taxation TOPIC : TAX HAVENS: BANE or BOON

INTRODUCTION : 

Offshore financial centers play the role of tax havens offering composite tax structure and minimalist legislative and administrative controls that lure of the wealth from the richest of  the world who are seeking safe deposits of their black money which they could move anywhere in the world as per their wishes without attracting any governmental attention. Tax havens havens encoura encourage ge busine business ss corpor corporati ations ons and wealth wealthy y econom economic ic entiti entities es to avoid avoid  paying taxes, which leads to substantial revenue losses for governments. Governments of  de deve velo lopi ping ng nati nation onss in pa part rtic icul ular ar,, us usee ta tax x re reve venu nues es fo forr fu fund ndin ing g va vari riou ouss hu huma man n developmental works; sufficient revenue generation from taxes frees developing nations from the strings tied with foreign aid. The situation becomes worse in view of the fact that most of the poor nations earn meager tax revenues in view of the low corporate tax rates (due to the ensuing tax competition competition among nations for attracting attracting foreign foreign investment investment)) and trade trade libera liberaliz lizati ation, on, which which has practi practical cally ly done done away away with with im impor portt taxes taxes (an erstwh erstwhile ile source of revenue). Whil Wh ilee the the trans transna nati tion onal al corpor corporat atio ions ns us usee thei theirr ha haven ven weal wealth th to su subdu bduee do dome mest stic ic competiti compe tition on from the companies companies operating at smaller smaller scale. The offshore global financ financial ial institutions make use of banking secrecy codes and trust services to render a security  blanket over the proceeds of global drug trade, illegal arms trade, fraud, political corruption and the like. Also rapid movement of portfolio capital (both in and out) in nation nat ional al economi economies es occurs occurs via offsho offshore re financi financial al centers centers.. This This makes makes the domest domestic ic financial markets unstable and volatile.

 

.This paper aims to study and analyze the effects of offshore tax havens on global and Indian economy, the policies of government towards offshore banking and how far they have been successful.  

OBJECT OF THE PROJECT : 

The project seeks to analyze the effect of offshore banking on economy of a country in context of globalized economy with emphasis on India .

SPECIFIC OBJECTIVES :

1)

To study the de deve vellopment of offshore tax hav haveens.

2)

To ex exam amin inee tthe he co conc ncep eptt & impa impact ct of offs offsho hore re ta tax x hav haven enss in in Ind India ian n con conte text xt..

3)

To give give a p pos ossi sibl blee poli policy cy mea measu sure ress whi which ch ca can n mak makee tax tax ha have vens ns pl play ay po posi siti tive ve rol rolee

in global economic growth.

SOURCES OF DATA COLLECTION : 

The project will be consuming primarily the secondary sources ranging from economic surveys, bank reports, articles and relevant judgments and provisions of law.

 

R ESEARCH ESEARCH TECHNIQUES  FOR  DATA COLLECTION :

The research techniques will include examination of legislations through surveys, analysis of working of several offshore financial institutions through questionnaires and relevant methods.

METHODOLOGY TO BE ADOPTED :

A descriptive and deductive   approach will be followed in the project wherein the research has been conducted by taking certain established laws into account and drawing specific inferences in the light of the fact situations.

MODE OF CITATION :

A uniform mode of citation shall be adopted and followed consistently throughout this  project. The style of footnoting shall be as per the citation citation followed at HPNLU Shimla

 

PROPOSED 

CLASSIFICATION   DURING  THE 

R ESEARCH ESEARCH  PROPOSAL 

CHAPTERIZATION :



Executive Summary

1)

About Tax Havens:

a) What are they?  b) Where & How do they exist? c) What’s the harm they posit? d) Will they (tax havens) yield to the pressure? p ressure? 2)

International Regulatory framework 

3)

Indian Perspective:

a) Unique Dimensions of the problem  b) What the Government has been doing? c) How the Indian courts have tackled the issue? d) Current Position 

Conclusion and suggestions.



Bibliography.

APPROVAL   FOR   THE 

 

BIBLIOGRAPHY :

Books 1) Roy Rohatgi, Basic Rohatgi, Basic International Taxation( Taxation( Second Edition) Vol. I & II 2007, 20 07, Taxmann 2)  Vogel Klaus, Klaus Klaus, Klaus Vogel on Double Taxation Agreements & Tax Laws Laws,, 2008, 5th Ed. Websites 1)Article

on

international

finance

globalization.http://dx.doi.org/10.1080/13569770802550958 2)U.S

banking

guidelines

on

due

diligence

with

OFCs.http://www.occ.treas.gov/handbook/bsa-amlappendixes.pdf  3) 

R.B.I

guidelines

in

FEMA

on

setting

up

of

offshore

banking

units.http://www.caclubindia.net/books/manual_sez_ftwz_ifsc/Ch%2021.asp 4) Financial services, banking secrecy and money laundering. http://www.amlcft.com/UN

%20ODCCP%20Financial%20Havens%20Banking%20Secrecy%20and%20Money %20Laundering.pdf  5) 

Africa’s

bane:

Tax

havens

,

Capital

flight

and

the

corruption.

http://www.realinstitutoelcano.org/wps/wcm/connect/resources/file/ebb9cd4b5ef04b6/WP 12009_Christensen_Africa_Bane_TaxHavens_CapitalFlight_Corruption.pdf? MOD=AJPERES&attachment=true 6) Offshore: The Dark Side of the Global Economy by William Brittain-Catlin 7)

Legal Offshore Tax Havens: How Take Legal Advantage of the IRS Code…  by Jesse Schmitt

BARE ACTS:

1)

Income Tax Act, 1961

2)

Smug Smuggl gler erss and and mani anipul pulat atiion of forei oreign gn exch exchan ange ge mani manipu pullat atiion( on(fo forrfe feit itur uree of 

 property) Act,1976. 3) 4)

Narc Narcot otic ic drug drugss and and psy sych chot otrropi opic subs ubsta tanc nces es Ac Actt,198 ,1985 5 Prevention of corruption Act, 1988.