GAAR rollback a surrender to US: CPI-MMay 8th, 2012 - 4:46 pm ICT by IANS
New Delhi, May 8 (IANS) India’s decision to defer the implementation of the General Anti-Avoidance Rules (GAAR) by one year “is a meek surrender to finance capital … and the US”, the CPI-M said Tuesday.
The decision on GAAR “and diluting many of its provisions is a meek surrender to finance capital, MNCs and the US administration”, the Communist Party of India-Marxist said.
“The US Treasury Secretary had personally lobbied with the Indian finance minister to revoke the GAAR, during the latter’s recent US visit in April 2012,” it said.
GAAR was meant to strengthen India’s tax laws to prevent foreign investors from avoiding paying taxes on capital gains in India, using the Double Taxation Avoidance Agreements (DTAAs) with tax havens like Mauritius, the CPI-M said.
“It is noteworthy that over 40 percent of FDI inflows into India are routed through Mauritius, in order to facilitate crores of rupees of tax savings by foreign companies at the cost of the Indian exchequer.
“GAAR have been implemented in countries across the world to crack down on such tax avoidance, including in developing countries like South Africa and China in recent times.
“Dilution of the GAAR in India would lead to the loss of thousands of crores of tax revenues for the government,” a CPI-M statement said.
It said other “retrograde announcements” by Mukherjee included the cut in capital gains tax on private equity, cut in withholding tax on foreign borrowings and withdrawal of tax on property transactions.
“These are all meant to favour big financiers and real estate players.
“The government’s excuses on lack of resources to fund subsidies and social welfare scheme ring hollow in the face of such tax largesse for the big businesses.”
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- Deferred GAAR not because of any fear: Mukherjee - May 08, 2012
- India defers implementing GAAR for a year - May 07, 2012
- India defers GAAR by a year (Lead) - May 07, 2012
- Industry welcomes GAAR deferral - May 07, 2012
- Mauritius will find solution on tax evasion: Mauritius minister (Interview) - Feb 12, 2012
- PM sets up experts panel to review, rework GAAR - Jul 13, 2012
- GAAR adding to investors' anxiety: ICRA - Apr 26, 2012
- PM refers tax on portfolio investments to GAAR Committee - Jul 30, 2012
- P-notes holders will not be taxed: Mukherjee - Mar 30, 2012
- Rupee rises to 7-week high of 54.36 against dollar - Jul 03, 2012
- GAAR panel will certainly meet Sep 30 deadline: Shome - Jul 21, 2012
- Pranab resigns, PM may keep finance ministry (Second Lead) - Jun 26, 2012
Tags: borrowings, capital gains tax, communist party of india, communist party of india marxist, CPI, crores, double taxation avoidance, fdi inflows, foreign investors, indian finance minister, largesse, mncs, paying taxes, property transactions, rollback, social welfare scheme, tax avoidance, tax havens, us treasury secretary, withholding tax