News Update

GST - Rule 89 - Refund of ITC - 14/2022-CT - Benefit that gets accrued by way of legislation cannot be denied/curtailed moreso when it is clarificatory in nature: HCGST - Refund of ITC - Production of shipping bills - Transmission of energy could not have been visualized when Rule 89(2) was incorporated in the Statute book: HCGST - Requiring petitioners to produce shipping bills, as proof of export cannot be made applicable to electricity as export can only be through transmission line, but not through rail, road or water for which documents can be made available: HCEconomy Needs Synergetic Inputs to fix twin Deficits of Inflation & Rupee fall43 injured in fire at Durga Puja pandals on UPAgriculture Income & ITR 7OPEC+ debate cutting production by 1 million barrels per day; Crude price up by 3%I-T - 6 months' limitation for deciding refund claims is to be followed strictly: HCBrazil’s Presidential elections: Neither candidates get 50% votes; Bolsonaro to face Lula in second round of pollI-T- Customs duty paid for yacht can be allowed as it is not used by assessee for its own personal use and has operated yacht for benefit and use of entities paying operating fee : ITATLanka reduces tax rate on sanitary napkins amid fiscal crisisI-T - No addition on account of bogus sundry creditors can be made, if AO fails to substantiate non-availability of vendors: ITATXiaomi expresses despair over attachment of Rs 5500 Cr assets in IndiaST - No service tax is payable on amount collected towards liquidated damages: CESTATTruss says her Chancellor decided himself to reduce UK’s rate for top tax bracketCX - There is no reason to deny refund when assessee has availed drawback of only the customs duty portion and not of excise duty: CESTATSexual assault case against founder of JD.com, China’s one of biggest e-commerce giants, settled in USCX - After 1.4.2011, appellant cannot avail credit on outdoor catering services, thus credit availed for period 1.4.2011 to 30.4.2011 which is part of SCN is not eligible for credit: CESTATIsrael, Lebanon about to hammer out deal on maritime tangled borderCus - First Appellate Authority was correct in allowing appeal thereby ordering provisional release of goods in question and since there is no change in facts, same is followed in case on hand as well: CESTATBurkina Faso’s junta leader agrees to dethrone himselfUkraine war - France’s spirited support being questioned; 2% arms support found lowest in EUDeath toll from Hurricane Ian mounts beyond 80 thus far in Florida & Carolina put togetherMexico braces up for Hurricane OrleneSP’s supremo Mulayam Singh Yadav is in ICU at Gurugram MedantaGovt reduces export duty on petro goods; makes Special Additional Excise Duty NIL for ATF; Rs 3.5 per litre on diesel & Rs 8000 per tonne for petrol125 die in Indonesian stampede after fans invade football ground and police hurl teargas; 180 injuredAnti-hijab fire spreads across Iran; Rallies organised throughout countryKing Charles III not to attend COP27 in Egypt on advice of Truss GovtUS, Venezuela swap prisoners - 7 Americans for 2 relatives of President MaduroUS, Japan & Australian Defence Ministers vow to work against Chinese military ambitionsWIPO’s Global Innovation Index - India walks up to 40th rankFM says IBC law cannot be allowed to lose its teeth and object
 
Making People Pay - The Economic Sociology of Taxation

Authored by Sibichen K Mathew
Published by Global Vision Publication House
No of Pages: 299
Price: Rs 599

Legal Corner Icon

By N Nityananda, CA

Legal Corner IconMANY novels and fictions are so gripping that readers once they start seldom stop till the last page. That cannot be said about books on Economics and more so on taxation!! Here is a well researched and multidimensional book on taxation, which makes an interesting reading of a dry (?) subject like taxation.

The book starts of with the question in every taxpayer's mind Why should I pay taxes? The author has illustrated various justifications of the taxpayers for the tax evasion and dodging. The reasoning ranges from a fundamental issue of absence of reciprocal benefit from the state to the intolerable fact of tax evasion perceived in their surroundings. It is in this constant dilemma of a citizen, the book Making People Pay' the Economic Sociology of Taxation is to say the least is the light at the end of the tunnel. The credibility of this book is higher as the author is a scholar on the subject and he has alongside direct experience in the tax machinery of our vast country.

The system of taxation has traveled a long way from the historic approach of a smooth process akin to a bee collecting honey from a flower to a world of legal complexity, administrative heterogeneity and political inconsistency. But has it taken the entire tax paying population alongside is a difficult question to answer. The book rightly analyses that the economic models are unable to capture the behaviors of taxpayers.

The chapter on Indian and global tax history makes an interesting reading. The evolution of taxation through a series of wars far and wide, colonialism and tax revolts are well captured. Today we read in newspapers about the crores of rupees of taxes paid by Bollywood and cricket stars. The book compares this trend with the tax regime during ancient India, particularly of 324 BC (Mauryan Kingdom), when dancers and actors paid good amount of taxes compared to the businessmen. The pilgrim taxes and taxation used as a tool of discrimination amongst religions by rulers of both ancient and medieval India.

Then comes the relationship and conflicts of ideology between Politics and Economics. Author has analyzed the dilemmas in public policy, as there is an inevitable conflict of ideology between the political commitments and long-term desirability of such commitments for the country. He has also critically analyzed the link between black money, voluntary political funding and public policy compulsions.

The heart of this book is the analytical discussions on the subjects of tax evasion and tax enforcement. The author displays his vast knowledge and experience while dissecting the causes and consequences of tax enforcement, particularly income tax raids. This may be the first such study in the world that has analyzed the sociological and economic aspects of the invasion to private lives by an enforcement agency. From the how and why of tax evasion to the interviews of those who were raided by the investigation wing of the department adds value to the reader. The study has results which are astonishing, to say the least 73% of the respondents say that the IT raid helped in organizing their business better and 84% say that they are more systematic in recording and maintaining the accounts and 53% say that they have achieved better financial results after the raid only. Only 15 to 32% complain of losing their business to losing their customers on account of raids. The research by the author also points out the 76% of the respondents agree that in recent years there is better tax compliance. But it is surprising to find that many taxpayers openly admitted that they evade their taxes even after an income tax search.

The book clearly showcases the modus operandi followed by tax evaders and the reasons for tax evasion as perceived by them. These facts are not collected from any official records, but from the data gathered from the taxpayers themselves. The author has also delineated the expectations of the taxpayers from the government, tax system and tax officials. His analysis of the fiscal challenges for the developing economies in the context of globalization and tax competition is scholarly and academically stimulating.

The book has its own share of humour with cartoons by gifted cartoonist Mr.Sajjive Balakrishnan. One cartoon depicts how Speech is Silver' to a taxman and Silence is Golden' to a taxpayer!!! The forewords written by the SSN Murthy, Chairman CBDT and M N Venkatachaliah, former Chief Justice of India are very inspiring and informative.

When I started reading the book, I was engrossed and when I completed the reading, I felt more enriched and rewarded. It is a must read to all citizens young and old. The details can be found at http://makingpeoplepay.blogspot.com.


POST YOUR COMMENTS