M.R. Venkatesh is a Chartered Accountant who addresses the Business concerns relating to Economic Policies, International trade and Business strategies.
M. R. Venkatesh passed Chartered Accountancy in 1992 with an all India Ranking and has been in active practice since 1993 as partner of GSV Associates, Chartered Accountants, Chennai.
Friday, 31 October 2014
Moneys parked in secret accounts in tax havens is not a mere tax evasion issue.
“It is respectfully submitted that due to increasing globalisation, it has become easier for taxpayers to make, hold and manage investments through financial institutions outside of their country of residence. Therefore, vast amounts of money are kept offshore and go untaxed to the extent that tax payers fail to comply with tax obligations in their home country.”
Now, this is not a lecturer of finance in High School pointing out to his student on the downsides of global financial architecture.
Rather, this is the preliminary submission of Government of India in a Writ filed last week with the Hon’ble SC. It is apparent from this submission that the government views the issue of money parked in secret accounts in tax havens solely as tax issue; to be sorted out by the tax man through the tax laws.
Thursday, 30 October 2014
Ignorance of the subject coupled with vote-bank concerns (remember that cane producers form significant vote-banks in several States) of our polity has pushed the Indian sugar industry to the brink — probably to the point of no return.
BJP led NDA Government faces a policy and political challenge on Sugarcane pricing with Maharashtra elections imepending. Sugar Cane pricing in the best of times is a complex exercise. If input cane prices are fixed too high, sugar industry loses its viability. This is more pronounced when global forces are at work. Elementary economics explains when input prices are arbitrarily fixed and output prices are market determined there is bound to be a meltdown, sooner than later.
Wednesday, 29 October 2014
Used as it was to revolve around the whims and fancies of Jaya, the AIADMK has neither a clear second line nor a party machinery that can function in the aftermath of the conviction of Jayalalithaa.
The initial shock of following the conviction of the former Chief Minister of Tamil Nadu is yet to sink in fully within Tamil Nadu. Political observers, nevertheless are quick to point out that it is too early to write the political epitaph of the mercurial leader. Let me hasten to add they are not absolutely baseless. Jaya was written-off by these very political pundits on innumerable occasions in the past only to eat the humble pie shortly.
The repeated political reincarnation of Jayalalithaa is part of TN’s, why even India’s, political folklore. What made her comeback stunning every time in the past is that like the phoenix, she has risen from the proverbial ashes only to quixotically fall back into the very fire from which she rose in the first place.
Monday, 08 September 2014
Let the Pakistan crisis be a lesson for all who call themselves secularists.
The term failed state is explained by Wikipedia as a case where the state has been rendered ineffective. Importantly, it must be unable to enforce its laws or provide basic goods and services to its citizens. Existence of factors (or combination thereof) high crime rates, extreme political corruption, an ineffective bureaucracy, judicial ineffectiveness, military interference in politics and cultural situations in which traditional leaders wield more power than the state etc. would broadly characterise a failed state.
Nevertheless, there is no real consensus on the precise definition of a “failed-State.” Various Government agencies and think-tanks often use their own indicators leading to a nebulous understanding of the term. Whatever be it, for most international observers, the fact remains Pakistan is by definition a failed State using any or all of these parameters.