Business Ethics and Corporate Governance, Second Edition

ILLEGAL TACTICS OF INDIAN CORPORATES

Several illegal tactics used by corporates in India over the years are as follows:

• Cornering of industrial licenses mainly with a view to preempting competitors to enter into their wellentrenched industry.
• Using import licenses to make a quick profit in the market.
• Illegally holding money abroad to meet business expenses and investments for which government would not allow enough funds.
• Trying to gain special advantages for the business through bribery of concerned officials, generating unaccounted money in the business so as to compensate for penal levels of taxation other ‘business’ expenses and political donations.

The extraordinarily high income tax levels of the 1960s led many companies to devise tax ...