Corruption in Income Taxes - Root Causes
We look forward to your inputs!
Transparency International India
Corruption in Income Taxes - Key Issues
1. Businesses pay bribes to get their income tax liability reduced
2. Income tax officers take bribes to not report offenders
3. After the investigation is over, a deal takes place. Only 20% is shown as penalty, 20% bribe and 60% remains with the client
4. The IT department intentionally sends notices at the wrong address and then levy penalty for not replying
5. Many cases of scrutiny, businessman cases, money laundering cases are decided on percentage bases by IT officials
6. Sometimes unsigned tax refund cheques are sent forcing people to go to the authorities where bribes are demanded to rectify the mistake
7. During IT raids, the officers take a lot of files with them and then ask for bribes to return them
8. Officials ask for bribes to let go of penalties
9. Start ups and SMEs receive notices which are more for harrassment and bribery purposes rather than real issues
10. SMEs, start ups, small businesses due to harrassment hire Chartered Accountants who in many cases promote bribery as they have been part of a broken system for a long time. more