Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: empanelment :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARD :: VAT Audit :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ACCOUNTING STANDARDS
 
 
News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

Govt plans law to counter cross-border tax evasion
August, 08th 2007
The government is planning to introduce strict laws to check cross-border tax evasion, often done though special transactions. Under the proposed legislation, any transaction carried out primarily to evade tax will be denied the benefits extended by the Double Taxation Avoidance Agreement (DTAA). Instead, such transactions will be governed under the domestic tax law. It will also cover the practice of registering companies in tax havens.

Many developed countries, including the US and the UK, have already enacted laws to contain tax evasion through artificial transactions. In the US, tax havens have already become a major presidential election issue.

The laws in these countries unambiguously support their revenue departments to deny the tax benefits to such transactions, while ensuring that genuine commercial transactions are not blocked. According to unofficial estimates, tax havens hide nearly $12 trillion, a major part of which is due to tax evasion.

The tax that could have been generated on hidden funds is estimated at $250-300 billion. The finance ministry has received proposals to enact stricter laws by the committees set up for framing the new tax code and also by the international tax division of the income-tax department.

The international tax division of the income-tax department has faced serious problems in its attempt to tax capital gains arising from the recent mergers and acquisitions involving Indian and foreign companies. Since some of the investments in such cases were routed through companies registered in tax havens, the department lacked the legal footing to make water-tight demands on these companies, though it had served the notices.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions