Indians seem to prefer Asian tax havens and not Switzerland, according to the bilateral foreign holdings data released by the Bank of International Settlements (BIS).
Indians seem to prefer Asian tax havens and not Switzerland, according to the bilateral foreign holdings data released by the Bank of International Settlements (BIS), says an article in the Times of India.
Switzerland has always been infamous for storing most of the black money which is generated by evading tax. However, data suggests otherwise. About 53 percent of the offshore Indian wealth is kept in places within Asia such as Hong Kong, Macau, Singapore, Bahrain and Malaysia and only 31 percent of the Indians have their wealth stored in Swiss banks.
The wealth stored outside India rose to USD 62.9 billion in 2015, which is 90 percent more since 2007. The amount stated in the data is about 3.1 percent of India's GDP in 2015.
This was released for the first time by BIS. Until last year, the body had tracked the data on the international financial activities but did not disclose the country of origin. The data does not include non-financial assets like real estate.
Analysing the new data for a National Bureau of Economic Research paper, economists calculated that the total offshore wealth in the world was USD 8.6 trillion, which is about 11.6 percent of the world's GDP.The plausible reasons for people to turn towards Singapore and Hong Kong could be because the offshore wealth in Switzerland has become more transparent than before and the Panama Papers leaks which exposed other tax havens.