Indian panel suggests postponing tax evasion rules

Indian panel suggests postponing tax evasion rules

Islamabad : Pakistan | Sep 02, 2012 at 1:49 AM PDT
Views: Pending

The panel stressed that GAAR should be used for deterrence rather than to generate revenue.

An Indian government panel has proposed that controversial rules to clamp down on tax evasion should be deferred by three years in a move aimed at reassuring rattled foreign investors.

The General Anti-Avoidance Rules (GAAR), introduced in this year s budget, seek to curb tax evasion through tax havens, but have been widely criticised as a money-grabbing exercise by a government battling to curb its budget deficit.

"The implementation of GAAR may be deferred by three years on administrative grounds," recommended the panel in its draft report released by the finance ministry on Saturday.

The panel, chaired by Parthasarathi Shome, also stressed that GAAR should be used for deterrence rather than to generate revenue.

The government had earlier delayed putting GAAR into effect by one year after foreign investors expressed alarm that tax authorities would misuse the new rules to go after companies which had invested through legitimate routes.

The government has already said the tax rules will not be imposed retroactively as some foreign investors had feared.The expert panel also said that the government should announce the implementation date for GAAR immediately to reduce uncertainty.

India s ability to attract foreign investment is crucial as it urgently needs funds to upgrade dilapidated airports, roads, ports and other infrastructure to ease bottlenecks and spur slowing economic growth.Prime Minister Manmohan Singh -- renowned for initiating the country s economic liberalisation in 1991 -- has admitted tax problems have fuelled a "negative mood" among investors towards India.

1 of 1
allvoices news
allvoices news
sababutt is based in Pakistan, , Pakistan, and is a Stringer on Allvoices.
Report Credibility
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear

News Stories

  • Expert panel for postponement of GAAR by 3 yrs

      Times of India
    Saturday recommended postponement of the controversial tax provision by three years and abolition of capital gains tax on transfer of securities...Mauritius is the most preferred route for foreign investments because of the liberal taxation regime in...
  • GAAR panel to cover all non-residents

      The Economic Times
    Download free ET iPad add for easier viewing of latest and financial News !...Parthasarthi Shome, was made after the panel in its report suggested changes in the Income Tax Act and Rules. Finance Ministry release said. "It has now been decided to...
  • Put off GAAR for 3 years, says PM-appointed panel

      Time of India
    Experts say this clause is expected to calm foreign investors who route their investments through Mauritius, with whom India has a double-tax avoidance treaty...The panel recommended abolition of the tax on gains arising from transfer of listed...
  • Defer GAAR till 2016-17: Shome panel

      Indian Express
    A committee set up by Prime Minister Manmohan Singh to examine all aspects of taxation of foreign investors has also recommended that tax certificates issued to them by the Mauritius government should be accepted at face value by Indian revenue...
  • Delay GAAR by 3 yrs, recommends Shome panel

      The Economic Times
    The Shome panel has recommended a delay in implementation by three years. Parthasarathi Shome has recommended a delay in implementation by three years...Another major recommendation of the panel is with respect to continuation of Mauritius benefits.
  • Defer GAAR by 3 years, says PMi¿½s panel

      Daily News & Analysis
    Parthasarathi Shome, has recommended putting off its implementation by three years to the financial year ending in March 2017. It has also recommended a breather for Mauritius-based entities and an abolition of capital gains tax for listed securities,...





More From Allvoices

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report

Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.