Money is not a concrete thing that we can say is good or bad. Money is nowadays a source of life. However, not everything in reality can be bought with money. This is also true despite the fact that money solves almost any problem. If we look deep into the topic, if we think about it a lot we will understand that money is a really good thing if you spend it right, and for good purposes, such as for the sake of public benefit. Why not if you use money to buy something for you, it is also good, because your use it to make yourself happy. However, there are people who use money for their dark desires, and in this case money is just a dirty thing, which helps them to realize their injustice. At this point money is a really devastating thing. Very often to commit crimes and to do other illegal things, people use fake money, forgery and also black money. If fake money is just a fake paper and is a low class crime, then the black money is a high class crime. It is not just about the fake paper. The paper is not fake, but the way the money was made is fake. This means that the money is taken by illegal means, and by illegal activities controlled my government. The money may be taken away from the country’s budget, such as underground economic activity. Those who use black money, must spend it in underground economy or hide it, or try to legitimize them by money laundering.
The black money can include the target of all the things that are actually forbidden. For example prostitution, trafficking, drug trafficking, the sale of weapons and money other illegal things.
Black money or black market usually is done in the countries that lack economic transparency.
We enter into black market also when we do not pay taxes for the transaction of legal or illegal services or goods.
Actually things that are forbidden and the sale of it may just require some license. While some people lack money and time to gain all the required documents and papers, and this is how much of the black market arise.
Black market may affect even ordinary people who do not realize they are being integrated into black market. Usually black market does include trafficking, prostitution but also there are things in black market that are more serious but less known among people. That is the sale of human organs, babies and weapons.
There are people who support black markets because they state that black markets sometimes provides necessary things that in reality are not allowed, and that governments ban for no reason.
Others are against it thinking just the opposite way. The black market contributes to illegal things and brings to disaster.
There are some countries that are more famous for their black markets and black money.
Black money is the issue that troubles a number of economies around the globe. A rampant problem; wealth concealment is done by entrepreneurs, politicians and even celebrities with the aim of eluding taxation. While a nation’s economy suffers, many individuals conceal their wealth in tax havens as well as several foreign banks.
This write-up divulges the specifics of black money and gives you a list of the top countries that are most hit by this enervating issue.
- China the Black money Hub
The country that has an exceedingly high business tax at 63.7 percent is where entrepreneurs feel the need to conceal their income. With annual GDP at 8.6 per cent coming from the extremely populated country, denizens still manage to conceal well over 300 billion dollars per year that is saved in cash or hidden away in foreign banks.
- Mexico- A close second
Mexico is another region that has a sky-rocketing business tax at 52.5 per cent; while the GDP is stagnant at 3.7 per cent. This is because Mexican entrepreneurs manage to conceal their profits to avoid shelling out taxes. Coming in at a close second, Mexico guesstimates the hidden funds at approximately 500 billion dollars annually.
- Malaysia
Although deemed as the perfect environment for start-ups, Malaysia imposes business tax at 24.5 per cent. The main reason for wealth concealment here is the inflationary forces that intimidate the nation. Illicit funds in the last year totaled at a whopping 310 billion dollars, when the GDP was 4.6 per cent.
- Saudi Arabia has an extremely high circulation
Wealth concealment is rampant here with 260 billion dollars the previous financial year. With tax havens aplenty, the denizens have no dearth of places to conceal funds as the GDP increase was near 5.51 per cent every year. The sources of the cash have been deemed to be ‘gifts’ on transactions as well as under the table money exchange.
- Russia
Illegitimate funds outflow is measured at 172 billion dollars in this country that has a GDP hike of nearly 3.9 per cent each year. Entrepreneurs have to pay tax at 54.1 per cent. Unmonitored foreign exchange has seen a lot of illegal funds enter the country. Corruption in the government is seen as a major reason that has failed to curb this issue in Russia.
- Philippines
With substantial wealth concealment at 138 billion dollars annually this country’s economy suffers. The GDP is steady at 3.7 per cent, while most of the real income is tapped off to external financial institutions, the cause of which is suspected to be the high business tax of 46.6 per cent.
- Nigeria’s illegal outflow
One of the main reasons for the rampant wealth of certain Nigerians is the fact that they hide their real income in spite of a GDP hike of 6.7 per cent. Annual concealed funds are estimated at 131 billion dollars due to the entrepreneurial tax that is 33.8 per cent. While the authorities turn a blind eye, experts suspect deep-seated corruption as the cause.
- India
Paperless money transfers, extra billing and concealing the real income has increased Indian illegal cash reserves to 129 billion dollars. The country has a stable GDP rise at 6.5 per cent, but the business cess of 61.8 per cent encourages people to default with tax evasion techniques.
- Indonesia
With a relatively low illegal income figure, Indonesia has yearly 109 billion dollars, due to entrepreneurial tax at 34.5 per cent. However, the slowly rising GDP of 6.5 per cent seems to be promising for the nation’s outlook.
- The United Arab Emirates
Illicit funds in the United Arab Emirates are constantly growing and have reached the 108 billion mark in US dollars. The UAE has a GDP that is on the rise at 4.9 per cent meaning the disposable income of citizens’ increases as well. However, not all of the money is going into local banks for businessmen as well as independently wealthy individuals are siphoning off their funds to financial institutions abroad. This is mainly due to the high rate of taxation of business profits that equals 14.9 per cent.
Other countries like Belarus, Poland, Panama, Chile and Egypt also see rising black money reserves as a grave threat and are implementing strategies to curb the issue.
