tag:blogger.com,1999:blog-3202774368551476669.post4526774146660936627..comments2023-09-15T16:21:31.980+05:30Comments on INDIAN CORPORATE LAW: Direct Taxes Code 2009: Draconian "Anti-Avoidance" Measures?Umakanth Varottilhttp://www.blogger.com/profile/12438677982004444359noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-3202774368551476669.post-78099304407691576692009-08-15T16:19:21.631+05:302009-08-15T16:19:21.631+05:30The provisions mentioned have been put forth with ...The provisions mentioned have been put forth with a clear cut objective of showing to the world that our country is showing tremendous progress in terms of emulating countries with the worst possible draconian laws. The job of a chartered accountant/ a lawyer/ a tax consultant may well become redundant if these provisions are brought into force. Even if someone tries to read the provisions in consonance with each other, section 114 seals the taxpayer's fate by reiterating innocent until proven guilty.Unknownhttps://www.blogger.com/profile/16646573219507731646noreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-2178305634381340732009-08-13T18:11:23.423+05:302009-08-13T18:11:23.423+05:30also, there is no time limit for issue of notice i...also, there is no time limit for issue of notice in these cases...Talking Turkeyhttps://www.blogger.com/profile/04036822150573696579noreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-71931747895495501642009-08-13T13:27:21.246+05:302009-08-13T13:27:21.246+05:30Today's Business Standard echoes some of the c...Today's Business Standard echoes some of the concerns you've raised here. It also quotes Mr. Nishith Desai as saying that the GAAR in the present form is a "draconian provision which contradicted the settled positions of tax jurisprudence established over more than half a century ago"<br /><br />Also, one more aspect - there is a back-door entry to domestic tax laws overriding treaties!<br /><br />As a matter of international law, India will face state responsibility for breach of treaties in that case. As a matter of domestic law, the constitutionality of the provisions would be open to a serious challenge. <br /><br />The proposed code, if enacted into law, is likely to be seen as a tool of indirect expropriation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-51632977397571860732009-08-13T12:44:37.738+05:302009-08-13T12:44:37.738+05:30This part of the Code needs serious changing! Nobo...This part of the Code needs serious changing! Nobody can deny that the government has the right to take anti-avoidance measures. But this General Anti Avoidance Rule goes way too far as you point out!<br /><br />I believe South Africa has a similar presumption; but substantively the law is much better there. And the proposed discussions in the UK on the GAAR are much lighter than this one. <br /><br />This is likely to only encourage evasion and corruption; much like how it was in the pre-liberalisation era. Is India back on its way (in substance and not form, as that's how the government prefers it) to being the highest taxed nation?Jorgehttps://www.blogger.com/profile/00794290848383550291noreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-24009919522367612512009-08-13T08:17:31.071+05:302009-08-13T08:17:31.071+05:30Pending an individual study of the Code, I have me...Pending an individual study of the Code, I have merely a tentative but sincere suggestion to offer: In – “Deciphering the code” (BL, 12 Aug), listen to and bear in mind the ‘sagely’ advice which has come from no less a person than the former FM – on as to – what is ‘the best way to’ read/go about it, how it ‘should not be read’, What is a ‘wrong way to read’, etc., etc. For after all, as is largely believed, he is the last in line of the ‘architects’ who has had a significant role in the structuring of the new born Code, being the final output of – that has been claimed, also acclaimed in certain quarters and described as –‘Simplifying processes’.<br />vswaminathanvswaminathannoreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-34140915966631986152009-08-13T01:16:29.514+05:302009-08-13T01:16:29.514+05:30The measure has been introduced very cleverly. Mos...The measure has been introduced very cleverly. Most of the Bills provisions are beneficial - but this one just takes away everything. I think that this is a serious Art. 14/19 violation. Countries have experimented with general anti-avoidance rules; I think South Africa comes closest to such a terrible measure. Nobody else. And Soviet Russia at least is direct about it - "you shall not carry out business"!<br /><br />Here, effectively, if I invest in a security which is a parmissible deduction, I will have to show that I did it out of "genuine commercial interests" and not to gain the benefit of the deduction!<br /><br />Utterly ridiculous; this point needs to be highlighted.Anonymousnoreply@blogger.com