Prez expresses anxiety over white collar crimes, banking frauds by business tycoons

New Delhi, July 1 : President Ram Nath Kovind on Sunday expressed his anxiety over white collar crimes and banking scandals involving business tycoons and said when such episodes occur, it would be imperative to question whether those responsible for auditing balance sheets have truly done their duty.
Launching the Platinum Jubilee Celebrations of Institute of Chartered Accountants of India (ICAI) here, the President said, when banking scandals take place, when large borrowers abscond and leave their banks in the lurch, “it represents a breach of faith”.
“…it amounts to a betrayal of not only corporate ethics but of honest fellow citizens and of the collective value system,” he said.
“White collar crimes don’t leave behind a smoking gun; they leave behind broken hearts and a shaken confidence,” Mr Kovind said adding “when such episodes occur, it would be in order to introspect and it would be relevant to ask if those responsible for auditing balance sheets have truly done their duty or if they have contributed to the sorry situation”.
He said adherence to a fair taxation system is much more than merely providing revenue to the government and it is part of the same social contract that underpins the Constitution.
“Given this backdrop, there has been a sustained effort over the past few years to formalise the economy, enforce rule of law, promote transparency in financial and business transactions, and make India much more of a tax compliant society,” he said.
The introduction of GST has “not been a standalone move”, he said and pointed out at other measures like the Pradhan Mantri Jan-Dhan Yojana and the institution of the Insolvency and Bankruptcy Code and the passage of the Benami Transactions (Prohibition) Amendment Act – have helped promote smooth financial system.
Under the Constitution people have given themselves certain rights but also certain responsibilities, Mr Kovind said adding the taxes are what people pay to get social benefits in the form of public goods and services, health and education facilities and also better infrastructure and secures borders.
The President said, it is crucial that the responsibility is shared by the widest possible number of citizens whether they pay taxes directly or indirectly.
“It is the solemn duty of each one of us to contribute to the society that we share and the nation that we are part of. As chartered accountants you have a key role in advancing such a culture,” he said.
The President said that chartered accountants have a key role in advancing such a culture as they are both facilitators of tax payers and of the taxation system as well as watchdogs of public trust.
Speaking on GST, the President said, it has been a gigantic reform which has promoted the ease of doing business and enhanced tax compliance. The GST has reduced prices, simplified procedures for small and medium entrepreneurs.
He said, in the last 70 years, 66 lakh enterprises were registered with the authorities and in the one year of GST another 48 lakh enterprises have been added.
The President said, a massive Rs 45,000 crore rupees of GST refunds have been made till date, entirely online and through digital banking.
“Consumers, businesspersons, industrialists, those running small enterprises, government servants and tax authorities and, of course, the community of chartered accountants have all played a role in this critical transition to GST,” the President said.
Mr Kovind exuded confidence that Indian economy is set for a surge and by 2025 the country is expected to double the size its GDP by 5 trillion dollars.
“The growth in financial and business transactions will mean more work for chartered accountants and place a greater responsibility on you,” Mr Kovind said.
Mr Kovind urged ICAI to promote financial literacy among the young people and especially among women.
UNI.