Corporate entities across the world have been using tax heavens to deal with funds. It could either be for tax saving purposes or to route money in and out of the county. The impact of black money and tax havens has come into renewed focus with the recently Panama tax haven paper leaks. It may be the biggest heist in the history of mankind, if the Panama tax haven papers are to be held on to. Rich individuals and their families have as much as $32 trillion of hidden financial assets in offshore tax havens, representing up to $280bn in lost income tax revenues to various governments across the world.
To discuss this issue, Newsclick interviewed Editor, Economic & Political Weekly, Paranjoy Guha Thakurta. According to Paranjoy, the way funds have been transferred or handled really hides the ultimate destination where it lands. “There will always be some loopholes but if the authorities of a particular state is determined, there is no reason why it cannot be stopped” he points out.