Tax Reform Commission to submit first report in 6 mths: Shome
Tax Administration Reform Commission (TARC), set up by the Finance Ministry to suggest measures to prevent economic offences among other things, held the first meeting Monday and is expected to submit its report in six months.
New Delhi: Tax Administration Reform Commission (TARC), set up by the Finance Ministry to suggest measures to prevent economic offences among other things, held the first meeting Monday and is expected to submit its report in six months.
"The Commission held its first meeting today and will submit its first report within six months and thereafter submit periodic reports after every three months," TARC Chairman and Advisor to Finance Minister Parthasarathi Shome told reporters here.
The term of the 7-member TARC is 18 months and it will work as an advisory body to the Ministry of Finance.
The terms of reference of the Commission include a review of the existing mechanism of dispute resolution and methods to widen tax base.
The TARC will also recommend measures to strengthen inter -agency information sharing between Central Board of Direct Taxes (CBDT), Central Borad of Excise and Custom (CBEC), Financial Intelligence Unit (FIU), Enforcement Directorate, and also with the banking and financial sector.
It will review the existing mechanism and recommend measures to enhance predictive analysis to detect and prevent tax and economic offences, said an official statement.
Besides, it will recommend a system to enforce better tax mechanism -- by size, segment and nature of taxes and taxpayers that should cover methods to encourage voluntary tax compliance.
The statement said the Commission will be supported by a Secretariat and have its headquarters at Delhi. It will be provided information and quantitative data of CBDT and CBEC to do statistical analysis for making recommendations.
"An emerging economy must have a tax system that reflects best global practises. I propose to set up a TARC to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of our tax system," Finance Minister P Chidambaram had said in his budget speech.
The members of the Commission are Y G Parande, Sunita Kaila, M K Zutshi, S S N Moorthy, M R Diwakar and S Mahalingam.
The Commission will again meet tomorrow.