Corruption In Ancient China

Corruption among the police and administrative officers is not a recent phenomenon and has been an evil that has been present from the very ancient times. In ancient China, the practice of providing an extra cash allowance called Yang-lien i.e. nourish incorruptness was adopted in an effort to ensure that the officials were kept 'pure '.

References to the occurrence or existence of corruption can also be found in a number of Vedic texts. The RigVeda itself makes an allusion to the prevalence of Corruption and attempts were made to invoke a divine power to help combat the evil.
The relevant passage reads,

“Oh Lord, knowing everybody and everything in the most accurate manner, thou knowest the regenerate of good conduct and the degenerate, the destroyers of good works for general

The National Institute of Public Finance and Policy (NIPFP) in its 1985 report on Aspects of Black Economy has defined ‘black income’ as ‘the aggregates of incomes which are taxable but not reported to the tax authorities’. Further, black incomes or unaccounted incomes are ‘the extent to which estimates of national income and output are biased downwards because of deliberate, false reporting of incomes, output and transactions for reasons of tax evasion, flouting of other economic controls and relative motives’.

There are two possible ways by which black money can be created : Either the money itself has been generated through illegitimate activities such as drug trade, prostitution, terrorism or any other activity punishable under the state law, or the money itself may have been generated through legitimate means but the person fails to declare the said income and comply with the tax requirements.

Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through illegal money