Business Income Tax Corruption - Root Causes
Below are the key Issues and a few Root Causes as identified by you in regards to Business Income Tax Corruption. Kindly review them and list any additional Issues/Root Causes. We will then have a seperate discussion on solutions. The final objective is to submit a whitepaper to CVC, Ministry of Finance stakeholders and any others so actions can be taken in this area.
Transparency International India
Business Income Tax Corruption - Key Issues
1. Huge sum of money goes as fixed bribe from large export houses to customs department through intermediaries
2. To close the Income Tax and VAT assessments the higher ups takes bribes worth lakhs of rupees
3. Businesses bribe IT officers to overlook their tax frauds
4. CAs advice businesses of ways to save on taxes illegally
5. Typically, a business entity decides how much income tax it would pay. Accordingly, the books of accounts are adjusted by booking purchases, expenses etc. very often through sham transactions
6. Businesses collude with their partners to show losses and save on taxes
7. Businesses get a part of their pending taxes waived off by paying bribes
8. They also get penalties cancelled by bribing the officials
9. Officials sometimes simply send notices to many organizations for hassle value and creating more opportunities to earn bribes
10. CAs have always been dealing with IT officers a certain way and hence tend to flout rules assuming things cannot be done by following the process more
Transparency International India
Business Income Tax Corruption - Key Issues
1. Huge sum of money goes as fixed bribe from large export houses to customs department through intermediaries
2. To close the Income Tax and VAT assessments the higher ups takes bribes worth lakhs of rupees
3. Businesses bribe IT officers to overlook their tax frauds
4. CAs advice businesses of ways to save on taxes illegally
5. Typically, a business entity decides how much income tax it would pay. Accordingly, the books of accounts are adjusted by booking purchases, expenses etc. very often through sham transactions
6. Businesses collude with their partners to show losses and save on taxes
7. Businesses get a part of their pending taxes waived off by paying bribes
8. They also get penalties cancelled by bribing the officials
9. Officials sometimes simply send notices to many organizations for hassle value and creating more opportunities to earn bribes
10. CAs have always been dealing with IT officers a certain way and hence tend to flout rules assuming things cannot be done by following the process more
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The officers are made more accountable and responsibility should also be fixed on it in case of harassment. CC cameras must be installed in their chamber so that the entire proceeding may be recorded. the annual property return of officers/officials should be placed on the web site. more
Oct 18
We are thankful & grateful to the technology for allowing us to submit our IT returns online . Please make necessary software to help us to submit supporting documents for all incomes ( specially for self assesses pensioners ) to avoid farther harassment of asking for supporting documents & opening doors for corruption . more
Oct 08
The trio - Businessmen, Chartered Accountant & Officials of different departments join hands to exploit the loopholes in the rules on payment of certain percentage. Unless the Vigilance Department is made strong, the practice of Tax violation can not be stopped. more
Oct 08
[1] Make computerized billing mandatory with bill no.and get checked the system by Vigilance officer posing as ordinary customer.[2]More raids on buisness bouses more
Oct 08
Institute of Chartered Accountants..Statutory must be held accountable.Hon Arun Jetligi speak up more
Oct 08
