Money laundering: Set example to make sure others fall in line, Arun Jaitley tells agencies

Jaitley said these violations are not difficult to detect and even a smart journalist can  detect irregularities by scrutinising filings with registrar of companies. The finance minister termed money laundering, round tripping, tax evasion and creation of shell companies as a serious offence as the money meant for eduction, healthcare, rural development is being taken away. “Our target has to be to make sure India as it evolves from a developing to developed economy (also changes) from a tax non-compliant society to a highly-compliant society. Once that were to happen, I think the fear of the law and the fear of the consequences visiting us itself will ensure compliance takes place,” he said.

Jaitley also called for introspection saying that as India evolves, the compliance level too should rise. “Legal compliances of  taxation and currency laws have been a feature of the developed states. If you go to  the developed world, violations are rare, but those who violate are strictly called upon and answerable to the law. There are strict penal consequences,” he pointed out. Despite being conventional in their societal attitude, Indians have never considered non-compliance with taxation and currency law as “morally improper” and instead it was considered as a “smart” act.

“And that is what leads to excessive dealing with cash economy, excessive non-compliance,” the minister noted.  Jaitley said the total budgeted tax revenue collection of over Rs 19 lakh crore would have gone up if there were compliance in India and this money could have been used for  funding education, healthcare, the poor and in betterment of infrastructure.