SURYA PRAKASH.M

The age-old adage "the rich get richer" has long been a subject of societal debate and scrutiny. In recent years, the discussion has gained renewed attention as accusations of wealthy individuals and corporations exploiting legal loopholes to avoid paying their fair share of taxes have surfaced. This controversial phenomenon suggests that the wealthiest individuals and entities are able to accumulate even greater wealth while evading their fiscal obligations, exacerbating economic inequality.

The rise of globalization and the increasing complexity of financial systems have undeniably facilitated the rich get richer phenomenon. With the ability to operate across borders and engage in intricate financial arrangements, affluent individuals and multinational corporations can strategically navigate tax laws and regulations to their advantage. Moreover, the advent of offshore tax havens has provided an avenue for the wealthy to shield their wealth from tax authorities, further exacerbating the issue, shedding light on the various factors and implications surrounding this contentious issue.

Tax evasion and tax saving are two distinct concepts with contrasting implications and legal standing. While both relate to the management of taxes, their approaches and outcomes are fundamentally different.

Tax evasion refers to the deliberate and illegal act of evading or avoiding the payment of taxes owed to the government. It involves dishonest practices such as underreporting income, inflating expenses, or concealing assets to reduce tax liability. Tax evasion is a criminal offense that can result in severe penalties, including fines, imprisonment, or both. It undermines the integrity of the tax system and is universally condemned.

On the other hand, tax saving is a lawful practice of utilizing legitimate strategies and provisions within the tax laws to minimize tax liability. It involves taking advantage of tax deductions, credits, exemptions, and incentives offered by the government. Tax saving is an accepted and encouraged practice that allows individuals and businesses to optimize their tax burden within the boundaries of the law. It involves careful tax planning, making informed decisions, and using lawful measures to minimize the amount of tax payable.

Many profound company like Starbucks, McDonalds are larger food companies but their main profit is from there real estate where their shop is located in, they all have their shops located in main areas and even billions of dollars as capital gain is in their pockets.

Most of the rich people just do real estate with good debt and gain only profits and it needs a lot of financial education to do so, Robert Kiyosaki the author of “rich dad poor dad “and the CEO of the rich dad company always in his podcast says about rich create cash flow by building up assets and owns over 7000 rental properties

The main reason they don’t pay taxes is that they don’t pay themselves first instead their companies hold all the money and they hold the company shares and every expense they make just get write  off as company expenses  and the system is constructed in a way that the rich stay richer and poor stays poorer, only the poor and middle class people pay taxes and even the government is okay with this as they get lot of tax from the employees created and at last it is the 80 percent of poor and middle suffer from this

For individuals, the income tax is levied on a slab basis, with different rates applicable to different income brackets. The tax rates may vary from year to year as per the budget announcements by the government. Additionally, various deductions and exemptions are provided to individuals to reduce their taxable income, such as deductions for investments in specified savings schemes, home loans, medical expenses, etc.

Corporates and businesses are subject to income tax on their profits. The tax rates for companies depend on their turnover, with lower rates applicable to small and medium-sized enterprises. The government has also introduced the concept of Minimum Alternate Tax (MAT) to ensure that profitable companies pay a minimum amount of tax, regardless of the deductions and exemptions availed.

Goods and Services Tax (GST) is another significant tax in India, which replaced multiple indirect taxes. GST is a consumption-based tax levied on the supply of goods and services. It has different slabs ranging from 0% to 28%, depending on the nature of goods and services.

The Indian tax system also imposes various other taxes such as customs duty, excise duty, and wealth tax. These taxes are levied on specific goods, services, or assets.

The tax administration in India is handled by the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). These bodies are responsible for formulating tax policies, collecting taxes, and ensuring compliance with the tax law.

HOW INDIVIDUALS AND THE CORPORATES PLAY THE TAXING GAME

The issue of how some wealthy individuals and corporations exploit the tax system to minimize their tax liabilities is a complex and controversial topic. While it is essential to avoid generalizations, there have been instances where certain individuals and companies have taken advantage of loopholes within the tax code. This has allowed them to reduce their tax burden, sometimes to an extent that seems disproportionate or unfair.

As of the “Wall Street journal” one common strategy employed by the wealthy is tax avoidance, which refers to legal methods used to lower tax obligations. This may involve exploiting loopholes or taking advantage of tax incentives and deductions that are available within the law. For example, wealthy individuals might establish offshore accounts or shell companies in tax havens, where they can shift their assets and income to benefit from lower tax rates or even tax exemptions.

Corporations also engage in various tax planning strategies to minimize their tax liabilities. They may engage in transfer pricing, where they manipulate the prices of goods and services between their subsidiaries to shift profits to low-tax jurisdictions. Additionally, multinational corporations can establish subsidiaries in countries with favorable tax policies to take advantage of lower tax rates or tax incentives.

To prevent the wealthy from escaping tax paying, governments have implemented several measures. Firstly, they have strengthened tax laws and regulations, closing loopholes and introducing stricter penalties for tax evasion. Authorities have also increased the resources allocated to tax enforcement agencies, enabling them to conduct more thorough investigations and audits.

Furthermore, governments have enhanced international cooperation to combat tax evasion. They have established agreements and information-sharing frameworks with other countries to detect offshore accounts and undisclosed assets. This global collaboration helps track and recover hidden wealth.

Moreover, governments have introduced measures like wealth disclosure requirements, where individuals are obligated to report their assets and income accurately. These measures help identify discrepancies between reported and actual wealth, enabling authorities to take action against tax evaders.

It is evident that rich use various loopholes to avoid paying tax so I believe we should promote fair taxation policies to prevent legal loopholes for the wealthy, ensuring a more equitable distribution of wealth and discouraging the rich from accumulating disproportionate resources while maintaining legality.

REFERENCE

• RICH DAD POOR DAD – by Robert Kiyosaki
• THE WALL STREET JOURNAL
• THE FINANCIAL TIMES
• LOOPHOLES OF THE RICH

Intertwining issues of legal and political problems in environmental law have become increasingly evident on a global scale. As the world grapples with pressing environmental challenges such as climate change, deforestation, pollution, and biodiversity loss, the need for robust legal frameworks and effective political action has never been more critical. However, the complex nature of these problems, coupled with varying political priorities and interests, has often hindered progress in creating comprehensive and enforceable environmental regulations. Addressing these legal and political problems in environmental law necessitates a multi-faceted approach that combines legal reforms, increased accountability, and political will. Cooperation between nations, strengthened institutions, and public engagement are essential to drive positive change and ensure the effective protection of our environment for future generations.

UNEP is a leading global environmental authority that sets the global environmental agenda, promotes sustainable development, and coordinates environmental activities within the United Nations system. It works with governments, NGOs, and other stakeholders to develop and implement international environmental conventions and protocols.

The IUCN is the world's largest environmental network, bringing together governments, NGOs, and experts to conserve nature and promote sustainable development. It provides guidance and expertise on environmental policy, conducts research, and advocates for the protection of natural resources. WWF is an international non-governmental organization dedicated to conserving nature and reducing the most pressing threats to the diversity of life on Earth. It works on issues such as climate change, deforestation, sustainable development, and the protection of endangered species. WWF engages in policy advocacy, scientific research, and on-the-ground conservation projects.

Greenpeace is a global environmental organization known for its direct actions and advocacy campaigns. It focuses on issues such as climate change, deforestation, overfishing, and pollution. Greenpeace uses peaceful protests, lobbying, and public awareness campaigns to promote environmental protection and hold governments and corporations accountable.

ELAW is a network of public interest environmental lawyers and scientists from over 80 countries. It provides legal and scientific support to local activists and organizations working on environmental issues. ELAW assists in the development of environmental laws, litigation, and capacity building for environmental advocacy.

EIA is an independent international organization that investigates and exposes environmental crimes, such as illegal wildlife trade, deforestation, and illegal logging. It conducts research, gathers evidence, and works with governments to develop and enforce environmental laws. FOEI is an international federation of environmental organizations that campaign for environmental and social justice. It focuses on issues such as biodiversity, climate change, and sustainable development. FOEI conducts research, advocacy, and grassroots mobilization to promote sustainable and equitable solutions.

LEGAL STEPS

• Environmental law organizations engage in international advocacy to shape policies, treaties, and United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD), to influence negotiations and promote environmental sustainability. These organizations contribute to the development and implementation of international frameworks, like the Paris Agreement, to combat climate change and reduce greenhouse gas emissions.
• At the national level, environmental law organizations advocate for the enactment of comprehensive environmental legislation and the strengthening of existing laws. They work closely with lawmakers, drafting bills and providing expert opinions to shape legislation that protects natural resources, promotes renewable energy, and prevents pollution. By engaging in strategic lobbying and public campaigns, these organizations raise awareness about environmental issues and garner public support for legislative action.
• Environmental law organizations often employ litigation as a tool to enforce environmental laws and hold governments and corporations accountable for environmental harm. They file lawsuits against polluters, challenging unsustainable practices, and seeking remedies for environmental damage. By utilizing legal avenues, these organizations aim to establish legal precedents and set a higher standard for environmental protection.
• Another crucial aspect of the work carried out by environmental law organizations involves advocating for robust environmental impact assessment processes. They ensure that proposed development projects undergo thorough assessments to evaluate their potential environmental consequences. By reviewing EIAs and challenging inadequate assessments, these organizations help safeguard ecosystems and promote sustainable development practices.
• Environmental law organizations collaborate with other like-minded entities, including non-governmental organizations, academic institutions, and grassroots movements. They form networks and coalitions to pool resources, share expertise, and amplify their collective voice. These collaborations enable them to tackle environmental challenges more effectively and influence policy and legal frameworks at various levels.
• Despite the significant strides made by environmental law organizations, several challenges persist. Insufficient funding, limited access to justice, and resistance from powerful vested interests pose obstacles to their work. To overcome these challenges, increased collaboration among organizations, strategic use of technology, and engagement with policymakers are crucial. Moreover, efforts must be made to address environmental issues through an intersectional lens, recognizing the interconnectedness of environmental justice with social justice and human rights

PROBLEMS IN IMPLEMENTING ENVIRONMENTAL LAW

• The implementation of environmental law poses numerous legal and political challenges that hinder its effectiveness and often result in inadequate protection of the environment. These challenges arise from a variety of factors, including conflicting interests, insufficient enforcement mechanisms, and limited international cooperation. As given in the” Environmental Law and Policy” one of the primary legal problems in implementing environmental law is the existence of conflicting interests among various stakeholders. Industries and businesses often prioritize profit and economic growth over environmental concerns. As a result, they may resist compliance with environmental regulations or lobby for weaker regulations to reduce costs. This conflict of interest creates a challenging dynamic where legal frameworks may not be strong enough to hold polluters accountable effectively.
• Insufficient enforcement mechanisms also contribute to the challenges faced in implementing environmental law. Governments and regulatory bodies often struggle to monitor compliance with environmental regulations due to limited resources and expertise. In some cases, the penalties for environmental violations may be inadequate to deter non-compliance effectively. Additionally, corruption and lack of transparency can undermine enforcement efforts, as powerful entities may attempt to influence regulatory decisions or escape penalties through illegal means Political factors further complicate the implementation of environmental law. Environmental issues often span national boundaries, requiring international cooperation and agreements. However, political differences, conflicting national interests, and differing levels of economic development can hinder collaboration and the formation of effective global frameworks for environmental protection. Political leaders may face pressure to prioritize short-term economic gains over long-term sustainability, making it challenging to achieve consensus on ambitious environmental goals.
• Furthermore, the complex nature of environmental problems, such as climate change or biodiversity loss, makes it difficult to design comprehensive legal frameworks that address all aspects adequately. Environmental issues often intersect with social, economic, and cultural factors, requiring interdisciplinary approaches and cooperation between different sectors of society. Achieving consensus on these complex matters can be politically challenging and time consuming. To overcome these legal and political problems in implementing environmental law, several measures can be taken. Strengthening legal frameworks and penalties for environmental violations, investing in enforcement capabilities and expertise, promoting transparency and accountability, and fostering international cooperation are crucial steps. Additionally, promoting public awareness, engaging civil society organizations, and encouraging meaningful public participation can help create a more favorable environment for the implementation of environmental law.
• The application of environmental law faces challenges arising from complex legal frameworks, inconsistent enforcement, and political influences so I think addressing these issues requires streamlining regulations, strengthening enforcement mechanisms, and fostering bipartisan cooperation to prioritize environmental protection and sustainability

REFERENCE

• “Environmental Law and Policy” by James Salzman and Barton H. Thompson Jr.
• “Global Environmental Politics” by Gabriela Kutting.
• Harvard Environmental Law Review.
• Ecology Law Quarterly.