Indian black money stash in tax havens is $181 billion

INVESblkmoneyAccording to economists from the Bank of Italy, India’s share of the astronomical $7 trillion in black money that lies hidden in tax havens across the world, is $181 billion.

This amount is only the wealth invested in shares and debt securities, or held in bank deposits.

All this wealth is hidden in tax havens that are jurisdictions with weak regulations and strong secrecy laws, using shell companies to conceal original identities. The Italian economists analysed data from the IMF and Bank of International Settlements to arrive at the figure.

Italian researchers explained that the big discrepancy between methods of calculating India’s hidden wealth in tax havens is because Indians seem to have a lower propensity for investing in foreign financial assets, which is why their share in global offshore financial assets as calculated from IMF data in a paltry 0.07%.

They admit it is veritably impossible to get a handle on other wealth invested in physical assets such as real estate, gold and art.