BUSINESS

How govt plans to check non-payment of taxes

Source:PTI
August 31, 2009 18:01 IST
India may soon have a database for international transactions, particularly those routed through nations with which New Delhi has tax avoidance pacts, to check non-payment of taxes, if a proposal by a government panel has its way.

To start with information available with the apex regulatory and enforcement bodies like Securities and Exchange Board of India, Reserve Bank of India and enforcement directorate may be collated, according to the proposal mooted by a panel constituted by the Central Board of Direct Taxes to look into abuse of tax treaties through tax haven nations.

The committee has suggested to have a complete database combining all the information available with Reserve Bank, Foreign Investment Promotion Board, market regulator SEBI, Financial Intelligence Unit (FIU), and the Enforcement Directorate (ED).

"The committee formed to examine the Investigation Issuesin Abuse of Tax Treaties and Tax Havens Development has suggested database of international transactions, Tax Avoidance Schemes involving tax havens, Foreign Investment Promotion Board, SEBI, Financial Intelligence Unit, RBI and ED data to start with," said a Finance Ministry official.

At present the information available with the revenue department on the international transactions, including business deals or income coming in from overseas, is scattered as it is maintained with various different authorities.

Source: PTI
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