|
Direct
Taxes
Code
Global Think Tank
c/o
( +91 22 6669 5000 www.dtcthinktank.com dtcteam@nishithdesai.com
|
||||||||||||||||||||||
|
PRESS RELEASE
Monday, December 20, 2010, MUMBAI
Global Think Tank undertakes detailed deliberations on the DTC |
||||||||||||||||||||||
|
Global
taxation experts and members of a specially convened Global Think Tank have
recommended a window of four months to further analyze and submit detailed
recommendations on the Direct Tax Code Bill to the Government of India. A
request for this extension has been made to the Parliamentary Standing Committee
on Finance by
Lauding the
exemplary initiative by the Hon’ble Finance Minister and the Parliamentary
Standing Committee in inviting comments on the DTC Bill, Mr. Desai
explained, “The DTC represents a significant policy opportunity for reforming
the existing tax system and creating a robust and sustainable tax regime based
on principles of equity, stability, increased compliance and economic
certainty.” Considering that the DTC Discussion Paper, in its current form, does not provide any analysis of underlying economic theories, juristic or scholarly writings, revenue estimates, international legal practices or policy alternatives and the pros and cons thereof, Mr. Desai added, “In view of the far reaching impact of the DTC proposals on both inbound and outbound investments and business, it is necessary to undertake a thorough comparative analysis of legal developments and best practices from around the world. The Discussion Paper however does not provide such analysis making it difficult for taxpayers, professionals and other stakeholders to meaningfully assess the Code and make recommendations. The 20 day period provided for commenting on a massive piece of legislation such as the DTC Bill would therefore not suffice for this purpose.” Presenting
the international perspective on India’s proposed Direct Taxes Code, eminent
academician and tax practitioner,
Mr.
David Rosenbloom, Professor, New
York University, stated that
“Some of the DTC proposals such as
general anti-avoidance rules, treaty override, change in the threshold for tax
residence, controlled foreign corporation regime, taxation of offshore share
transfers, etc. have to be approached with due caution. In addition to the
difficulties of developing appropriate rules for these complex subjects,
attention must be devoted to the implementation of such rules and efficient
means of both interpreting them and resolving the inevitable disputes they will
spawn.”
Traditionally, the task of assessing the direction and pace of tax reform has
been entrusted to able Committees of experts that have presented reports based
on in-depth research and analysis, allowing Parliament to identify appropriate
fiscal policy to suit the country’s interests. For example, the 1958 Law
Commission Report which laid the foundation of the current income tax law was
prepared by eminent jurists and draftsmen such as N.A. Palkhiwala, P.
Satyanarayan Rao, G.N. Joshi and P.M. Bakshi. The DTC however, is not backed by
such high level scrutiny or analysis. Further, the basic terms of reference for
drafting the DTC and the Discussion Paper have not been made available to
public. The DTC
Global Think Tank would be deliberating on several important constitutional and
international law issues including extra-territorial fiscal jurisdiction, treaty
override and abuse of powers, and present their recommendations by May 2011.
Media Contact:
About the Global Think Tank on Direct Taxes: The Global
Think Tank on Direct Taxes has been convened by The following
internationally recognized personalities have accepted to be a part of the DTC
Global Think Tank and share their views, insights, and recommendations:
|
||||||||||||||||||||||
|