New Delhi (05.10.2021): Why is it that the so-called International Consortium of Investigative Journalists (ICIJ) is always focused on corruption in Third World Countries? This question is not meant to argue that there is no corruption in the Third World. Indeed, political, intellectual, and financial corruption is indeed the prime reason for the unbelievable poverty of many third-world countries. But corruption isn't limited to the Third World. It is indeed the hallmark of even the first and second world. So, why not include them too in the investigation. Now, we are told about something called Pandora Papers. Based on 2.94TB of confidential data, these papers are supposed to inform us about the offshore secrets of wealthy elites from more than 200 countries and territories. The investigation is claimed to be based on a leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations, and other entities in low or no-tax jurisdictions. Let's be very clear: It will be next to impossible to prove the illegality of the funds parked in offshore legally mandated tax-free jurisdictions. Like, did we get anything out of the Bofors Papers? Gladiators of the press, who bluffed the whole country, ended up doing one remarkable thing: weakening the Indian Military and compromising its position versus the known enemies. And the great and clean former PM VP Singh, who made such an issue of the HDW submarine deal, couldn't offer even a scrap of evidence to prove the illegality of the purchases. What he of course produced was reservations for the OBCs in the name of social justice to cover up his witch hunt against former PM Rajiv Gandhi who had given him, in his naivete, so much space in the politics of the country. In the recent past, we have seen what the Panama Papers or Paradise Papers revealed and the results therefrom. Nothing happened. And nothing will ever happen. Let's be very clear about it. It has to be recognized that if capital is not allowed to channel itself into productive job-creating assets because of the left-liberal fundamentalist policies of a government, it will always migrate into tax heavens, however hard any socialist government of the world may try. So the NDA administration may be well advised to keep guard against this sort of communist/socialist adventure journalism, whose representatives in India are well known. It's good that the government has decided to monitor reports originating from Pandora Papers through a Multi-Agency Group, headed by the Chairman, CBDT, with representatives from CBDT, ED, RBI & FIU. It will be better if the government also hires some seasoned independent CAs and Legal advisers for consultations as the case progresses to balance things arising from the Robin Hood/Bagi Man Singh (of Chambal) attitude of social justice. May it be noted that, despite collaborations among nations at the UN level, there is nothing so far on record to suggest that governments have succeeded in any worthwhile manner in preventing money laundering unless it is related to terrorist activities. The success there is due to survival instinct. And, may it be noted, no one's survival is endangered by migration of funds to tax havens to escape the tyranny of leftist-liberal agenda of several governments in the world, excepting those who have been recklessly profiteering from the business of telling others what to think about making the world a more livable place and not how to think and thus change the world. (By Mukul Shukla)
Pandora Papers: A commentary
By Mukul Shukla - 2021-10-05 08:11:00
New Delhi (05.10.2021): Why is it that the so-called International Consortium of Investigative Journalists (ICIJ) is always focused on corruption in Third World Countries? This question is not meant to argue that there is no corruption in the Third World. Indeed, political, intellectual, and financial corruption is indeed the prime reason for the unbelievable poverty of many third-world countries. But corruption isn't limited to the Third World. It is indeed the hallmark of even the first and second world. So, why not include them too in the investigation.
Now, we are told about something called Pandora Papers. Based on 2.94TB of confidential data, these papers are supposed to inform us about the offshore secrets of wealthy elites from more than 200 countries and territories. The investigation is claimed to be based on a leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations, and other entities in low or no-tax jurisdictions.
Let's be very clear: It will be next to impossible to prove the illegality of the funds parked in offshore legally mandated tax-free jurisdictions.
Like, did we get anything out of the Bofors Papers? Gladiators of the press, who bluffed the whole country, ended up doing one remarkable thing: weakening the Indian Military and compromising its position versus the known enemies. And the great and clean former PM VP Singh, who made such an issue of the HDW submarine deal, couldn't offer even a scrap of evidence to prove the illegality of the purchases. What he of course produced was reservations for the OBCs in the name of social justice to cover up his witch hunt against former PM Rajiv Gandhi who had given him, in his naivete, so much space in the politics of the country.
In the recent past, we have seen what the Panama Papers or Paradise Papers revealed and the results therefrom. Nothing happened. And nothing will ever happen. Let's be very clear about it. It has to be recognized that if capital is not allowed to channel itself into productive job-creating assets because of the left-liberal fundamentalist policies of a government, it will always migrate into tax heavens, however hard any socialist government of the world may try.
So the NDA administration may be well advised to keep guard against this sort of communist/socialist adventure journalism, whose representatives in India are well known.
It's good that the government has decided to monitor reports originating from Pandora Papers through a Multi-Agency Group, headed by the Chairman, CBDT, with representatives from CBDT, ED, RBI & FIU. It will be better if the government also hires some seasoned independent CAs and Legal advisers for consultations as the case progresses to balance things arising from the Robin Hood/Bagi Man Singh (of Chambal) attitude of social justice.
May it be noted that, despite collaborations among nations at the UN level, there is nothing so far on record to suggest that governments have succeeded in any worthwhile manner in preventing money laundering unless it is related to terrorist activities. The success there is due to survival instinct. And, may it be noted, no one's survival is endangered by migration of funds to tax havens to escape the tyranny of leftist-liberal agenda of several governments in the world, excepting those who have been recklessly profiteering from the business of telling others what to think about making the world a more livable place and not how to think and thus change the world.
(By Mukul Shukla)
