Black Money - Compliance Window - More legwork required

Compliance Window measure initiated by GOI is an opportunity provided to a tax evader to come clean by proper declaration and it is equivalent or similar to the recent VCES in service tax. It is a fact that clarifications issued in VCES scheme were too many and caused quite a lot of confusion. The issue of clarification went even upto the closing date of VCES. Further the declarations received and revenue realised are only a miniscule part of the target that could have been achieved. Similarly in the present window scheme the date to file declaration has been advanced , which is bad in law as it amended the date approved by the parliament and president. Further the advancing of the date will not help in proper implementation of the scheme as the history of such schemes, including VDIS indicate. The objective and the purpose would have better served if the intervening period was used for proper publicity and issue of clarification to the concerned tax payer. The aim of the scheme must be to garner more revenue which has escaped the clutches of law for whatever reason and it should be by providing sufficient time and procedure along with positive environment.

To provide feasible environment the least that could be done now is to clarify the doubts that may arise during the intervening period. Clarifications sought need to be attended to on top priority, on day to day basis. But by looking into the way our tax facilitators are functioning, I am doubtful about the success of the scheme.

MG Kodandaram
Superintendent
NACEN,Bengaluru

madihally kodandaram 09/07/2015