13 Tax Havens Around The World Where Rich Indians Stash Their Money Away From Prying Eyes

Rich Indians love to park their wealth offshore, away from the public glare and the scrutiny of Income Tax Department.

The Panama Papers Leak is testimony to this fact

Now the world knows how Panama was used by some very influential names across the globe to stash unknown millions. Well, Panama isn't the only tax havens the rich use to hide assets.

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Before the leaks, an estimated $1 trillion of Indian "black" money was believed to be stashed abroad, according to government's estimates.

It was more than India's annual GDP. Moreover, only 3% of the population, World Bank estimates show, was actually paying taxes in our country.

Every successive government promises to bring back this black money.

The Modi government is hoping to choke India's black-money culture with mandatory tax number declarations for people shopping with large sums, linking biometric identities to every bank account, opening new payment gateways and promoting credit card use, but India's rich still find their ways out, just like they have been for years now.

We give you the names of 15 of the world's most popular tax havens where the rich store their millions, sometimes legally and sometimes not so legally!

1. DUBAI

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Hundreds of high net worth, resident Indians have floated companies in Dubai's free trade zone to evade tax or stash away piles of unaccounted cash.

2. SINGAPORE

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Personal income tax rates in Singapore are one of the lowest globally, GST tax is applicable only when annual turnover exceeds S$1 million, Capital gains aren't taxed, and there is no inheritance tax.

Setting up a business in Singapore is also fairly easy since one just needs single shareholder, one resident director with a local address, and a minimum paid up capital of S$1 within a day or two.

3. MAURITIUS

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For years, foreign companies and investors have routed foreign investment into India through Mauritius-based-holding companies to take advantage of its corporate tax regime and lack of withholding and capital gains taxes.

4. NETHERLANDS

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Indian companies take advantage of a number of Dutch tax rules to reduce their tax burdens.

5. BAHAMAS

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6. CYPRUS

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7. CHANNEL ISLANDS

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8. BRITISH VIRGIN ISLANDS

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The British Virgin Islands has no corporate tax either. There¡¯s no real estate tax, inheritance tax, gift tax or sales tax, and it has an effective income tax rate of zero. From 2012 through 2014, overseas investment by Indians grew by an astonishing 700 per cent here. There are several others like British Virgin Islands with either lower income tax rates, sometimes as low as 2%, or virtually no taxes like¡­..

9.CAYMAN ISLANDS

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Unlike most countries, the Cayman Islands does not have a corporate tax, making it an ideal place for multinational corporations to base subsidiary entities to shield some or all of their incomes from taxation.

10.HONG KONG

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11.SWITZERLAND

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This does not need introduction. We have all heard of the Swiss banks, haven¡¯t we?

12.US

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The US has become one of the few places left where advisers are actively promoting accounts that will remain secret from overseas authorities. It¡¯s creating a hot new market and becoming the go-to place to stash foreign wealth.

13. SEYCHELLES

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Seychelles has long been perceived as one of the preferred offshore havens for routing funds. However, India only last year signed an official info exchange pact with Seychelles, and others like Cayman and British Virgin Islands, to stop illegal activities.