Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: 3.3
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.3
Article rating: 1.0
Article rating: No rating
RSS

News

No escape for firms as tax information from countries pouring in: CBDT

Author: IANS/Wednesday, August 23, 2017/Categories: Tax

No escape for firms as tax information from countries pouring in: CBDT

New Delhi, Aug 23 - Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said that the tax exchange agreements with other countries was resulting in information pouring in at a fast pace, thus there was no escaping for the multi-national companies (MNCs) from fair taxation.

"We have got wide (tax) information from countries. We have agreements with 130 countries. It's like a global hub. Information on tax transparency is coming at a fast pace. It is a thing of past that any information can be hidden," Chandra said here at the 14th International Tax Conference organised by Associated Chambers of Commerce and Industry of India (Assocham).

"Each company/MNC thus should believe in fair taxation," he added.

Referring to the Panama Papers disclosures, he said that the information has been received on it from various countries.

Finance Minister Arun Jaitley earlier had said that in some cases of Panama Papers details have been received and criminal proceedings will be carried out.

"In cases of which we are receiving details, we send notices, assess their income tax details and raise tax demand. According to the law, criminal proceedings are also carried out. In HSBC and now in Panama Papers, the proceedings will be carried out. In some cases details are received. It is now a disincentive and a risky business," Jaitley had said in the Lok Sabha on August 1.

India has tax information exchange agreements, including Double Taxation Avoidance Agreements (DTAA) and Tax Information Exchange Agreements (TIEA), with 130 countries.

Chandra said that the aim of the department is eradicate black money, reduce litigation and bring certainty in tax laws.

On June 7, 65 countries, including India, signed the multilateral convention to implement tax treaty related measures to prevent Base Erosion and Profit Shifting (BEPS).

To foster a non-adversarial tax regime, CBDT also signs Advance Pricing Agreements (APAs), which currently stand at a total of 171.

"Tax transparency and tax certainty are the guiding principles of taxation. There is need to make tax laws more effective, rational and transparent. We welcome suggestions so that tax laws can be made simpler," the CBDT Chairman said.

He said that the department would also ensure that the genuine taxpayer does not suffer and would act as a facilitator.

"We want proper application of law without any misuse of treaty, transparency of transactions and settlement of litigations as soon as possible," he said.

He said that in the last 3-4 years, lot of changes have been made in international taxation and countries will have to be ready for capacity building on all fronts.

"International taxation is an issue which is not fully qualified in any country. Now more countries are asking their share in taxation," he added.

Akhilesh Ranjan, Principal Chief Commissioner of Income Tax (International Taxation), Ministry of Finance, who was also present at the conference, said that there was internationally a shift to tax cooperation and common tax policy which makes evading taxation difficult.

"Countries have agreed to share tax information on automatic basis. They are willing to share data. So there is no escaping now. The industry has no option but to come up with ways to comply," Ranjan said.

"Businesses have to understand that days to contrive agreements are over. We are looking ahead at a lot of changes," he added.

Print Rate this article:
No rating

Number of views (366)/Comments (0)

S Vijaykrishnan
S Vijaykrishnan

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free