Friends
Money in foreign bank is hot issue these days. The perception is that some rich people have parked the funds out side the country and evaded tax on such money. Most of the developing countries have this problem. Public, Media, Politicians, all are cursing such businessmen fraternity for this. Every day Newspapers are full of analysis to arrive at the total money lying outside and if brought into the country how much it would benefit the nation. One way is to bring this money by forfeiting and other is to create a situation where the funds are automatically brought into he country. Major reasons for keeping money outside the country in safe heavens are Higher Taxation, Hiding money from the society and Safety of the money.
i. Tax rates are still very high in developing countries and this forces the people not to disclose the income and keep it outside the country. If the tax rates are reduced to 10%-15%, people would not hesitate to disclose the income. Singapore has 17% tax rate only.
ii. The social fabric in our country also forces the people to hide income. Those who create wealth show it gradually to escape the expectations from the society. Not only this the zealousness and family disputes and social demands also prompts the people to hide the income. The fear of sharing the wealth with family relatives is one of the important cause of hiding. It is fact that the biggest enemy and friend are always from the family.
iii. The fear of politicians, mafias, Bureaucrats, Government machinery also forces to hide the money. In most of the cases they would act against the person possessing and showing the wealth. It may be disaster for such person to disclose the wealth.

The perception that this money can be brought in and fully transferred to the Government is absolutely impractical and wrong. Unless we create good atmosphere in the country, better investment opportunities and very low tax rates, social and government safety for wealthy people, the money would remain out of the country and would be continuously used by the developed nations where such money is parked. We need to think differently if we wish to become developed country soon. We need to give full respect to wealthy people to get their support for the upliftment of society. There is nothing free in this world and no body is going to serve without consideration (money, status, respect, popularity, name, fame). There is lot to talk about this, may be later.
CP