FM bats for automatic info exchange to curb tax evasion

Era of tax avoidance over: CBDT

BQ: The era of tax avoidance in the garb of minimising taxes is over. I am sure that people who are still bent upon organising their businesses in a manner that use all kinds of tools to avoid taxes are going to be outliers in the system — Anita Kapur, cbdt chairperson

Tribune News Service

New Delhi, October 8

Finance Minister Arun Jaitley has emphasised the need to ensure that the common reporting standards on automatic exchange of information are implemented globally on a fully reciprocal basis as this would be a key to prevent international tax evasion and avoidance.

Jaitely was speaking at the 49th Annual Commonwealth Finance Ministers Meeting at Lima, Peru.

He noted that India has been the beneficiary of these systems by getting vital information on tax evasion and emphasised the need for genuine and equitable multilateralism in deciding global norms and standards on taxation.

He welcomed the efforts of OECD in areas of BEPS project and automatic exchange of information which have important implications for Commonwealth countries.

Addressing a tax conference here today, CBDT chairperson Anita Kapur today said action would be taken against those who try to organise businesses with a view to minimise liability.

"The era of tax avoidance, am not talking about evasion, in the garb of minimising taxes, is over. And I am sure that people who are still bent upon organising their businesses in a manner that use all kinds of tools to avoid taxes, are going to be outliers in the system," she said.

Kapur said companies have to pay the government where actually a business has taken place. "Tax is in the board rooms. Tax is no longer in the offices of the CFOs, because your brand will suffer if you get a stigma of being a tax avoider," Kapur said.

Assuring taxpayers of all fairness in processes and compliance, the CBDT chief said the department will also need to gear up to take action against tax avoidance and evasion as they spoil the compliance regime.

Chairman of Central Board of Excise and Customs (CBEC) Najib Shah said the growing international mobility of goods and capital demands greater cooperation among customs administrations.

On the one hand, we have to mobilise and facilitate legitimate trade, on the other, we have to be at the forefront of the fight against importation of dangerous and harmful goods”, he said.