Eliminate black money
We all know that black money is being generated by tax evasion through unreported/hidden/shadow accounts and also by corruption and fake currency. Tax evasion is being caused by the indirect result of high tax component on commodities and services, multiple taxes, complex tax structures, cumbersome accounting and auditing. In the present economic system, most of the money in circulation is in physical form (bills/notes). There are reported to be plenty of cases of lootings, robberies, homicides, extortions, ransoms, and bribes across the world in almost all nations because of this huge money in physical form. This physical money, in huge amounts, is being transferred from one hand to other eluding all tax nets in transactions of commodities or goods. The unaccounted GDP is said to be too heavy and varies from country to country depending upon the corruption level that exists in that country. In addition to this black money, there are also huge amounts of fake currency that has contaminated the genuine currency. The combined effect of the black money and fake currency is playing havoc with economies of many countries. To eliminate black money it is imperative to evolve a new tax system that will not allow tax evasion and at the same the collections and tax compliance should be made at absolutely free of cost, easy and involuntary without compromising on tax revenues. This paper entitled “TOP Tax system – A common tax system for all nations” suggests a new tax system without multiple taxes, tax laws, tax returns, tax collection departments, tax tribunals and tax enforcement agencies. In this new tax system, citizens need not maintain separate account books and submit tax returns annually for paying either Direct taxes on personal incomes or Indirect taxes while running business or industry. Taxation, tax collection, tax enforcement, tax compliance, allocation of revenues to various ministries or departments and money supply into the economy will be unified and integrated in the banking system. This new tax system will have only one compulsory tax called “TOP Tax” with single slab rate in place of present multiple taxes with different slab rates. The TOP Tax system’s tax collections (TOP Tax and Profit tax) for Government and tax payments/tax compliance by all citizens will be totally automatic and involuntary just like respiratory system in human body. Every account (MSA/SSA/CAN) will be an involuntary taxpaying account. In the suggested TOP Tax system, most of the money (99.6%) available in the economic system, will be in dematerialised form in the accounts of citizens, Governments and companies. Only small portion of money (0.4%) will be in physical form (cash) i.e. coins and notes at low denomination. Each individual will be allowed to withdraw restricted amount of money in cash form per month from available earnings or savings in his/her Main Savings Account. People will have to spend or use the remaining available earnings or savings in their accounts through debit card, cheque, DD, or online transfers. The amount of cash withdrawal per each individual should be equal to the total value of the GDP of that country divided by the population of that country above the age of 15 and divided by 12 (months). All higher valued currency notes will have to be demonetised, leaving only low valued currency notes, sufficient enough to purchase low valued commodities and services at the consumer or street level. This paper comprehensively explains how this new tax system shall be operated solely by banks at minimum operating cost with limited paper currency (0.4%) and dematerialised money (99.6%) of the total money available in the economy in the particular country, thereby totally eliminating black money, tax evasion, fake currency, corruption and extortions.
To read full article please log on to
Posted by VIJAYA KRUSHNA VARMA
- Author Articles
- More From This AuthorTax reforms - Taxes without tax laws A common tax system for all nations By VARMA I am suggesting new methods, models, and innovative and alternative policies in the areas of monetary system, budget...New economic system - A common tax system for all nations ----------------By VARMA I am suggesting new methods, models, and innovative and alternative policies in the areas of monetary system, budget...Remove Black money-- Abstract: - We all know that black money is being generated by tax evasion through unreported/hidden/shadow accounts and also by corruption and fake currency. Tax evasion is being caused...Repulse the global economic recession New economic system ---- A common tax system for all nations ----------------------By VARMA I am suggesting new methods, models, and innovative and alternative...
- Related Articles
- Related ArticlesGone are the extravagant wedding with even crazier price. During tough economic times couples get married quantity is reduced, but the average cost of a wedding is. They throw over the top accessories for...Now-a-Days there are number of blogging platforms web developers prefer for develop a blog of almost all fields; among them Wordpress is the best choice for all over the developers. Wordpress itself needs no...In order to acquire an excellent electronic infrastructure, people have adopted different types of devices such as switches, boards, wiring and holder among many other. Finest fitting of wire and electronic...Being separated from close relatives can be a difficult scenario but sometimes economic conditions require that individuals leave their home nation to find opportunities elsewhere. And while the emigrants may...The cross-platform relational database applications like FileMaker Pro have made it easier for the businesses to easily store, manage and update data by integrating a database engine with a GUI-based...
- Latest Articles
- Latest ArticlesAbout this time every year, I begin to wish I lived in Juneau, Alaska. In case you haven’t had the pleasure of walking 20 steamy blocks in Manhattan this week, it’s hot, it's humid, and if you have curls...Test4actual IBM Application Developer 000-610 updated computer based training is available among even such computers which are joined through networking so you can do your updated 000-610 labs latest test with...Every download of your Test4actual 70-667 exam questions is loaded with time saving questions and answers exactly like you will find on the Microsoft test. In fact, each Test4actual Microsoft MCITP (Microsoft...Test4actual CompTIA 220-802 study guides(CompTIA A+ 220-802 Certification Exam) simulations is offered to help you test yourself to see whether you have mastered the Conducting CompTIA A+ (CompTIA Certified...At True Concepts of Red Bank,New Jersey we are very concerned about living clean organic lifestyles. Owner of the Salon Kim Katz believes what you put on your body is just as important as what you put in...