'No escape for firms as tax info from countries coming in'
23 Aug 2017 11:00 PM IST
New Delhi: Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra on Wednesday 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 and Tax Information Exchange Agreements, 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.
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