Following (in blue color) is
direct copy paste from a long post I received on WhatsApp !
Why a Businessman Saved Taxes !
Govt. failed to provide constant Electricity, We bought Generators /Inverters
What the Tax Payer gets in Return at the retirement, when he needs most to survive ??
Like Western developed Countries if Indian Government could provide all the above why would anyone save taxes ?
We All know that the Major Tax revenue of Taxes are eaten by Government Officials and Politicians (billions of Dollars are lying in foreign Banks). A manufacturer works at a margin of between 2% to 10%,
That's the reason no one wanted to pay Taxes.
We saved Taxes for our Necessities, for our own old age, for our safety, security and this phenomenon is
Businessman is not a "Thief"
Try to correct the whole corrupt system, the businessman will automatically correct himself
Please Read & Understand the Reality !
Why a Businessman Saved Taxes !
Govt. failed to provide constant Electricity, We bought Generators /Inverters
Govt. Failed to provide Water, We installed Submersible
Pumps
Govt. Failed to provide Security, We hired own
Private security Guards
Govt failed to provide Good primary Education,
We admitted wards into Private Schools
Govt. Failed to provide Good Hospitals, We
saved our lives by paying heavily to Private Hospitals
Govt. failed to provide good Transportation, We
had to buy Cars & two wheelers for us & staff
Apart from all these, for each and every work
to be done in Govt Departments, all staff from Peon to topmost Officers needed to be illegally bribed
to get our legal works & needs done !
What the Tax Payer gets in Return at the retirement, when he needs most to survive ??
Nothing, no social security. But instead all
his life his hard earned income resource is used by government to distribute
subsidies and free distribution among masses to buy free votes.
Like Western developed Countries if Indian Government could provide all the above why would anyone save taxes ?
We All know that the Major Tax revenue of Taxes are eaten by Government Officials and Politicians (billions of Dollars are lying in foreign Banks). A manufacturer works at a margin of between 2% to 10%,
whereas government needs 30% of his income to
cover it's expenditures. How fair it is to all??
That's the reason no one wanted to pay Taxes.
We saved Taxes for our Necessities, for our own old age, for our safety, security and this phenomenon is
the sign of failure of a government of the
state in discharging it's own functions fairly and efficiently.
Government alone is responsible for this.
Businessman is not a "Thief"
Businessman is not a "Defaulter"
Businessman is not an "Accused".
He provides Job to Hundreds & thousands of
People.. He pays multi Taxes... He works hard to pay salaries, rents &
taxes ... He is the Backbone of our Economy ! Don't Break the Backbone of the Country
!
Try to correct the whole corrupt system, the businessman will automatically correct himself
I have received many questions on above lines and I do not deny it
completely.
For obvious reason, there is no official list of scams, just
google “top scams in India” and you will see them running into lakhs of crores
of rupees. Do remember that these are the scams that were found out (and
probably will never be proved), there are lot and lot more scams that is not known,
which itself can run into another few more lakhs of crores !!
However the beauty is that answer for the above question lies in
the question itself. (“…Try to correct
the whole corrupt system, the businessman will automatically correct himself…”)
Is demonetization not a step to tackle corruption? Corrupt leaders
are already yelling and screaming on top of their voice, they are hit big time
and no matter how much they try, it is not easy for them to convert all their
ill-gotten cash worth lakhs of crores into new currency notes overnight. As
worst case, even if corrupt leaders found ways to take care of their cash pile,
I ask again, is demonetization not an attempt to tackle corruption?
It is hoped that Modi will take more measures (like hopefully banning
cash donation to political parties, less-cash economy etc., ) to continue
tighten the noose but nevertheless no matter what I say or think, we (including
myself) will not be convinced until we see what else Modi does and based on
that what the results are. So let’s wait and watch how things unfold in near
future.
Let’s address the original question of tax evasion differently. Where does black money generated from evading taxes go and what is the fallout
of it?
This un-accounted (black) money of so called tax evaders /
business men (and not necessarily corrupt politicians) is mainly used for
-
Paying
capitation fees
-
Paying
donation for kids school admission
-
Paying
dowries
-
Paying
bribes
-
Paying
to mafia, naxals, organized crime etc.,
-
Paying
for large value items without bills/receipts
-
Etc.,
Most of whatever money people save by avoiding tax gets wasted in
“paying” for one or many of the above item. These and many more such payments via
black money continues to inflate prices and results in huge inflations year
after year. This is a never ending vicious cycle !
Yes, most of these payments are because someone has demanded this
money but they are demanding because they know there is un-accounted cash with
people. Imagine if EVERYONE starts paying for the above items in cheques or
credit/debit cards or online money transfers etc. Everything will be out in
open. If nothing else, do you think our judiciary will allow this to continue?
I have said again and again, we will never be completely
corruption and black money free. Individuals will continue to find ways to beat
the system, they will continue to innovate to remain corrupt. Let’s hope government
and judiciary also continues to innovate (be pro-active or re-active) to beat
these corrupt individuals in their own game. Government / judiciary will win
some, loose some but then continuous attempt has to be made and for continuous
attempt to happen, someone has to take THE FIRST STEP. To me, demonetization is
that first step !
Finally, beyond all this, what is there for you to loose? You are
not a corrupt leader to have lakhs of crores of black money. Whatever you have,
you have either already taken care or know how to handle it. In next few years,
if Modi or any other government does nothing to check corruption, it will not
take much time for you to find ways to accumulate black money again by evading
tax !
So, take a gamble and support this demonetization and any other
such initiatives that has good potential of checking corruptions. If everything fails, you can any
time go back to older ways of evading tax and get rich again in no time!
