India tackling the 'Black Money'

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#1

Apparently it’s pretty normal for people to, say, claim they sold their house for 65% of its real value and in the meantime the buyer gives them a few suitcases to cover the remaining 35% so it never gets taxed.

To get around this the government planned this sting whereby they announced without warning that all 500 and 1000 Rupee notes weren’t legal tender and you had to bring them into the bank to exchange them for new 500 and 2000 notes or else deposit them. There’s a maximum you can exchange before they ask you to prove where the money came from and possibly fine/charge you for tax evasion.

Some people have just shredded the cash!

My colleague tells me one our testers was staying late in the office. He had a 500 rupee note to buy dinner on the way home and the news came in so that was that. Had to go home without any food!

I did ask about people using family members to split up their cash but it seems they’ll be using ID to cross-reference and could come back and prove you’re a tax cheat.


#2

Seems pretty innovative


#3

Yeah, I’m quite impressed. Apparently there’s a massive election coming up too so part of this was to prevent a large amount of cash bribes being used (this is from my manager, who’s from India originally, I am not personally claiming this).


#4

I wonder if there will be economic consequences, what happens when money is just destroyed


#5

Ask the KLF.


#6

It must suck for the innocent but that’s so bloody clever that I can’t help but applaud it


#7

get them to the greeks


#8

They should do this with £50 notes here, guarantee the majority of people who have a surplus of £50 notes are Up To No Good.


#9

anyone who doesn’t buy their house/flat/whatever with cash is an absolute idiot, no?!


#10

Happens in Spain too, and used to happen in France. How they stopped it in France was that the local council could make compulsory purchase orders for the same price as you officially declared.


#11

“I would like to know why you’re taking £525,000 in cash out of your account, sir?”
“umm” thinks fast “I’ve got a really bad gambling habit.”


#12

Really good gambling habit, surely.