Judicial powers of tax assessment officer being reviewed: Shome
Updated: Mar 26, 2014 04:26:53pm
New Delhi, Mar 26 (KNN) Faced with complaints about tax assessment officer (AO) resorting to unsubstantiated demands on a tax payer, the Tax Administrative Reforms Commission (TARC) is looking into the issue – whether the judicial powers given to the AO should be reviewed, TARC chairman Parthasarathi Shome said at an ASSOCHAM meeting here today.
Delivering the ASSOCHAM 94th foundation day lecture Shome said that the judicial role of AO is being discussed in the TARC deliberations. “We are discussing whether it is an optimal level (AO)”.
Answering the questions and complaints from seniors industrialists about frequent harassment by way of tax demands of any level and amount depending upon the whims and fancies of the tax officers, Shome said, “in terms of chain of command we are looking at it……..How can we reorganize the way demands are being raised. I hope in TARC, we are able to deconstruct the behaviour pattern of both the tax assessment officer and tax payers”.
The TARC, mandated with job of reforming the entire gamut of tax administration, is likely submit its first report by May end. The TARC is given the tenure of 18 months’ time to give its final report which will go to the next government for follow up action.
Agreeing with a suggestion that the revenue collection targets given to commissioner and joint commissioner in the direct and indirect taxes exert pressure, Shome said, “we must be moving towards moving targets (like in several other countries) which reflects the economy...this meaningful”. He further said, the targets of the beginning of the year need to be reviewed during the course of the year in the context of changing economic conditions.
Shome also agreed that tax rates should not be too progressive because that would kill the incentive to save and invest. However, he asserted that the personal tax rates in India, measured in purchasing power parity are among the lowest in the world.
He said the TARC is also looking into the aspect of encouraging tax personnel to be friendly to the all tax payers.
He further added that it is a question of mind set. In case they become too much business friendly they get worried that questions may be asked about their motives.
He also suggested that the system must ensure the confidence that they will not be unnecessary vigilance on them because such a thing could curtail many careers. He also said that policy direction has been towards bringing more number of people in tax net which is about 3.6 crore at present. “We can go up to 5 crore that will enable tax rationalization and tax rate can also come down”.
ASSOCHAM Sr Vice President Sunil Kannoria said that the harassment level at the hand of tax men has only increased in the last few years and it has affected the investor’s sentiments.
Kannoria further added that the responsibility must be fixed in case tax officer make unreasonable and untenable demands.
Presenting a vote of thanks ASSOCHAM Vice President Sandeep Jajodia pressed for transparency in the tax administration and stressed the need for reforms. (KNN/SD)
Delivering the ASSOCHAM 94th foundation day lecture Shome said that the judicial role of AO is being discussed in the TARC deliberations. “We are discussing whether it is an optimal level (AO)”.
Answering the questions and complaints from seniors industrialists about frequent harassment by way of tax demands of any level and amount depending upon the whims and fancies of the tax officers, Shome said, “in terms of chain of command we are looking at it……..How can we reorganize the way demands are being raised. I hope in TARC, we are able to deconstruct the behaviour pattern of both the tax assessment officer and tax payers”.
The TARC, mandated with job of reforming the entire gamut of tax administration, is likely submit its first report by May end. The TARC is given the tenure of 18 months’ time to give its final report which will go to the next government for follow up action.
Agreeing with a suggestion that the revenue collection targets given to commissioner and joint commissioner in the direct and indirect taxes exert pressure, Shome said, “we must be moving towards moving targets (like in several other countries) which reflects the economy...this meaningful”. He further said, the targets of the beginning of the year need to be reviewed during the course of the year in the context of changing economic conditions.
Shome also agreed that tax rates should not be too progressive because that would kill the incentive to save and invest. However, he asserted that the personal tax rates in India, measured in purchasing power parity are among the lowest in the world.
He said the TARC is also looking into the aspect of encouraging tax personnel to be friendly to the all tax payers.
He further added that it is a question of mind set. In case they become too much business friendly they get worried that questions may be asked about their motives.
He also suggested that the system must ensure the confidence that they will not be unnecessary vigilance on them because such a thing could curtail many careers. He also said that policy direction has been towards bringing more number of people in tax net which is about 3.6 crore at present. “We can go up to 5 crore that will enable tax rationalization and tax rate can also come down”.
ASSOCHAM Sr Vice President Sunil Kannoria said that the harassment level at the hand of tax men has only increased in the last few years and it has affected the investor’s sentiments.
Kannoria further added that the responsibility must be fixed in case tax officer make unreasonable and untenable demands.
Presenting a vote of thanks ASSOCHAM Vice President Sandeep Jajodia pressed for transparency in the tax administration and stressed the need for reforms. (KNN/SD)
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