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Indian businessmen willing to pay higher taxes if Income Tax removes ambiguity
August, 13th 2015

Most Indian businessmen don't mind paying more taxes only if the Income Tax department can remove the ambiguity on taxation.

More than 90 per cent of Indian businessmen are willing to pay more taxes only if the Income Tax department gives some clarity on taxation, said an international business report by Grant Thornton.

"Understandably companies are eager to get clarity on taxes as the price of being slammed with unanticipated tax claims is not just the tax amount but the time, money and energy spent in defending such claims. Given the media attention tax cases garner these days, Apple, Google and Starbucks are classic examples and closer home Vodafone and Shell, being in the public eye, for all the wrong reasons doesn't do businesses any good either," said Pallavi Bakhru, Director, Grant Thornton Advisory Private Limited.

India ranked 1st amongst nations appealing for clarity on 'acceptable' tax planning with 95 per cent of Indian businesses willing to pay more taxes in exchange for greater clarity from authorities on what is acceptable, the report added.

The report added that the last majority would actually support paying more in tax in exchange for clearer guidance from tax authorities on what is acceptable tax planning. The ball is very firmly in their court to provide the clear lines that businesses are requesting. The results provide more evidence that clarity is needed in the complex world of cross border tax transactions.

 
 
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