Independent member for GAAR panel
16 May 2012 5:59 AM GMT
To ensure objectivity and transparency, the government will have an independent member on the approving panel for the general anti-avoidance rules (GAAR).
The approving committee, to be headed by director general of income tax, would give recommendations for formulating the rules and guidelines for the implementation of GAAR provisions and to suggest safeguards so that the provisions are not applied indiscriminately.
In a written reply to the Rajya Sabha, minister of state for finance S S Palanimanickam said that amendments to Finance Bill 2011 have been proposed in the provisions relating to GAAR. They propose 'to introduce an independent member, not below the rank of joint secretary from the ministry of law in the GAAR approving panel to ensure objectivity and transparency’.
Besides, the government has also proposed amendment in the GAAR provisions to remove the onus of proof entirely from the taxpayer to the revenue department before any action can be initiated under GAAR, he said.
Further, to provide that both resident and nonresident tax-payers can approach the Authority for Advance Ruling (AAR) for a ruling as to whether any arrangement to be undertaken is permissible or not under the GAAR provisions.
Amid pressure from foreign investors, the Government has deferred the implementation of GAAR by one year.
GAAR, which seeks to check tax evasion by foreign investors, will now come into play from 1 April 2013 and would apply to subsequent years.
The approving committee, to be headed by director general of income tax, would give recommendations for formulating the rules and guidelines for the implementation of GAAR provisions and to suggest safeguards so that the provisions are not applied indiscriminately.
In a written reply to the Rajya Sabha, minister of state for finance S S Palanimanickam said that amendments to Finance Bill 2011 have been proposed in the provisions relating to GAAR. They propose 'to introduce an independent member, not below the rank of joint secretary from the ministry of law in the GAAR approving panel to ensure objectivity and transparency’.
Besides, the government has also proposed amendment in the GAAR provisions to remove the onus of proof entirely from the taxpayer to the revenue department before any action can be initiated under GAAR, he said.
Further, to provide that both resident and nonresident tax-payers can approach the Authority for Advance Ruling (AAR) for a ruling as to whether any arrangement to be undertaken is permissible or not under the GAAR provisions.
Amid pressure from foreign investors, the Government has deferred the implementation of GAAR by one year.
GAAR, which seeks to check tax evasion by foreign investors, will now come into play from 1 April 2013 and would apply to subsequent years.
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