{"id":244340,"date":"2023-05-25T20:39:14","date_gmt":"2023-05-25T15:09:14","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=244340"},"modified":"2023-05-25T20:39:14","modified_gmt":"2023-05-25T15:09:14","slug":"the-uk-a-tax-haven","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-uk-a-tax-haven\/","title":{"rendered":"The UK a tax haven?"},"content":{"rendered":"\n

Source-<\/strong> The post is based on the article \u201cThe UK a tax haven?<\/strong>\u201d published in the \u201cBusiness Standard\u201d<\/strong> on 25th May 2023.<\/p>\n

Syllabus: <\/strong>GS2- International relations. GS3- Economy<\/p>\n

Relevance- <\/strong>Issues related to tax evasion, financial crimes and money laundering at global level<\/p>\n

News<\/strong>– The article explains the issues of UK providing safe tax haven for high net worth individuals and extradition issues between India and UK<\/p>\n

How is the UK a tax haven for high net worth individuals?<\/strong><\/h2>\n

There are\u00a0 reports that wealthy families from Russia, China, and India buy expensive residential and commercial properties<\/strong> in London. They store huge amounts of capital<\/strong> in the UK\u2019s overseas territories.<\/p>\n

According to a British Broadcasting Corporation report <\/strong>on August 3, 2022, some Russians and other high net-worth foreigners have used \u201cEnglish Limited Partnerships\u201d<\/strong> to hide the identity of the true owners.<\/p>\n

The following study of the \u201cIndependent Commission for the Reform of International Corporate Taxation\u201d<\/strong> is about how the UK\u2019s laws and practices result in tax evasion<\/p>\n

A Financial Times article<\/strong> suggests that there are benefits in setting up trusts in the UK\u2019s overseas territories. The confidentiality about the assets<\/strong> motivates them to deposit large amounts in these tax havens.<\/p>\n

The UK\u2019s overseas territories which are popular with tax evaders are the British Virgin Islands, Guernsey, Gibraltar, and the Cayman Islands. <\/strong><\/p>\n

What are extradition issues between India and the UK that are related to people accused of financial crimes in India?<\/strong><\/h2>\n

Currently the UK is harbouring high-profile Indians who have allegedly committed financial fraud <\/strong>in India. This is despite an India-UK Extradition Treaty. <\/strong><\/p>\n

One of several hurdles in getting criminals under Indian law back to India is that the offences committed in India must also be crimes in the UK.<\/p>\n

Further, the European Convention on Human Rights<\/strong> does not allow extradition to jurisdictions where a prisoner may be held in degrading conditions<\/strong>, or may be tortured.<\/p>\n

Lalit Modi, Vijay Mallya, and Nirav Modi have been accused or found guilty of financial fraud in India and have evaded extradition from the UK to India.<\/p>\n

What are the financial crimes committed by these people?<\/strong><\/h2>\n

Kingfisher Airlines have defaulted on borrowings of over 8,000 crore<\/strong>. It was sourced from several public-sector banks between 2004 and 2008.<\/p>\n

Kingfisher Airlines was also reported to have deducted 10%\u00a0 tax at source<\/strong> from its employees, as required by Indian tax law, but did not credit<\/strong> these amounts to the government account<\/p>\n

Nirav Modi obtained fraudulent letters of undertaking<\/strong> to misappropriate about 14,000 crore from Punjab National Bank.<\/p>\n

Why is it an appropriate time to raise the issue of extradition of people accused for financial crimes in India with the UK?<\/strong><\/h2>\n

In the May 2023 Northern Ireland council elections, the Sinn Fein party<\/strong> emerged with 31% of the vote, the highest. Sinn Fein and its supporters would like Northern Ireland to reunite with the rest of Ireland. <\/strong><\/p>\n

A unified Ireland<\/strong> may happen in another 10 years or less and all of Ireland may become part of the European Union. Scotland may leave the UK. It may join the EU.<\/p>\n

India should focus on concluding a broad-based trade in goods, services, and investments agreement<\/strong> with the EU and delay discussions on any India-UK trade agreement.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source- The post is based on the article \u201cThe UK a tax haven?\u201d published in the \u201cBusiness Standard\u201d on 25th May 2023. Syllabus: GS2- International relations. GS3- Economy Relevance- Issues related to tax evasion, financial crimes and money laundering at global level News– The article explains the issues of UK providing safe tax haven for… Continue reading The UK a tax haven?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,212],"class_list":["post-244340","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-2","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704934921},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/244340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=244340"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/244340\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=244340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=244340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=244340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}