>>No keeping money out of a bank in India is Indian law.
And for a very good reason.
Tax evasion is very common in India. In fact the most generally know thing is, if taxes are not deducted at the source of the transaction they won't be paid ever. Big money people are a little different, they are small in number to monitor and their transactions can be traced out easily.
But small to medium scale traders and business hardly pay taxes. Some even pride in doing so. The best case I've seen among these guys is paying some thing like paying 5% of the taxes they are supposed to pay. I've asked a few people why they don't pay, and the answer comes simple. If they pay the right taxes once, given the business growth they have to pay a little more next year. So they use every trick in the book to pay as little or nothing at all.
Now if they are allowed to freely park money in places where it can't be traced easily(like these) they will have a field day.
May be if citizens show a little responsibility and do what they are honestly supposed they will get laws that trust each other. Until then if the government has policies to curb fraud you shouldn't look too surprised. After all, laws are optimized for the common case.
Just to be clear, paying little or no taxes is only government fail to collect them. It has nothing to do with responsibilities. There is no law in the world that forces anyone to maximize tax that it has to pay, so everyone has a right to pay as little tax as legally allowed.
The difference in your arguments is that the OP is saying they are paying 5% of the tax they are legally required (not allowed) to pay. It is just by using deceitfulness that they do not have to pay the full tax owed.
There is a big difference between minimizing your tax burden and pretending you dont have assets/revenue so you straight up dont have to pay taxes on them.
And for a very good reason.
Tax evasion is very common in India. In fact the most generally know thing is, if taxes are not deducted at the source of the transaction they won't be paid ever. Big money people are a little different, they are small in number to monitor and their transactions can be traced out easily.
But small to medium scale traders and business hardly pay taxes. Some even pride in doing so. The best case I've seen among these guys is paying some thing like paying 5% of the taxes they are supposed to pay. I've asked a few people why they don't pay, and the answer comes simple. If they pay the right taxes once, given the business growth they have to pay a little more next year. So they use every trick in the book to pay as little or nothing at all.
Now if they are allowed to freely park money in places where it can't be traced easily(like these) they will have a field day.
May be if citizens show a little responsibility and do what they are honestly supposed they will get laws that trust each other. Until then if the government has policies to curb fraud you shouldn't look too surprised. After all, laws are optimized for the common case.