President calls for two-pronged war against black money
16 Jul 2011
President Pratibha Patil has called for a two-pronged war against black money, both domestically and through cross-border measures.
"The thrust for better global cooperation has to be continued through appropriate agreements on tax information exchange and on mutual cooperation between countries to track down evaders taking shelter in other jurisdiction," Patil said while addressing a function marking 150 years of the Income Tax Department.
The United Progressive Alliance (UPA) government has been battling charges that it has been soft on tax evaders and those generating black money, unlike countries such as the US which have got cooperation from even Swiss banks.
Even the Supreme Court has attacked the government for its slovenly pace at recovering funds stashed abroad by Indians. On Friday, the government moved the apex court seeking a review of its decision to set up a special investigation team on black money, to be headed by a retired Supreme Court judge (See: Centre opposes SC order for special probe in black money case).
The government has also been under fire from 'civil society' groups and even a yoga activist, who have been demanding tougher anti-corruption laws, the appointment of a Lok Pal and the negotiation of treaties with other countries to bring back ill-gotten wealth.
Patil called for tough rules to book tax evaders. But an environment of voluntary tax compliance has to be fostered and nurtured, she added. "This could best be done perhaps by inculcating voluntary tax compliance as a core duty," noted the president.
