Manjula Chawla and Srinivasa Rao debate `treaty shopping’ and `round tripping’.
"Treaty shopping" occurs when a third-country resident derives benefits from a tax treaty intended to serve only the interests of residents of specific bilateral treaty nations. "Round tripping" refers to the practice of local investors that take money out of the country and bring it back in under the guise of a non-resident to escape the tax net.
I say subjecting capital to excessive regulation is dumb because it encourages smart people to lock up capital in unproductive boxes. Say No to drug money or terror funds by all means. But capital that takes a trip just because of excessive tax rates should be viewed through a different prism. Keeping in mind our infrstructure needs, it should be winked at.
I would rate it as enterprise. It is smart money anyway. If you don't let it flow, it will head elsewhere. Isn't it downright stupid to let go ?
Why spoil the party? Let the good times roll. Remember nobody got hurt between 2003-07 bull run ;-)
What say you, reader?