Business Tax Corruption - Inputs on Solutions
Below are some of the key issues and root causes as identified by you in regards to corruption related to business taxes. Please review and help identify specific solutions to these.
We look forward to your inputs and will soon take this matter up with industry bodies and Finance Ministry so actions can be taken on this issue.
Business Tax Corruption - Issues and Root Causes
1. Huge sum of money goes as fixed bribe from large export houses to customs department through intermediaries
2. To close the Income Tax and VAT assessments the higher ups takes bribes worth lakhs of rupees
3. Businesses bribe IT officers to overlook their tax frauds
4. CAs advice businesses of ways to save on taxes illegally
5. Typically, a business entity decides how much income tax it would pay. Accordingly, the books of accounts are adjusted by booking purchases, expenses etc. very often through sham transactions
6. Businesses collude with their partners to show losses and save on taxes
7. Businesses get a part of their pending taxes waived off by paying bribes
8. They also get penalties cancelled by bribing the officials
9. Officials sometimes simply send notices to many organizations for hassle value and creating more opportunities to earn bribes
10. CAs have always been dealing with IT officers a certain way and hence tend to flout rules assuming things cannot be done by following the process
11. Businessmen, Chartered Accountant & Officials of different departments join hands to exploit the loopholes in the rules
12. IT officers accept bribes to make easy money on the side
13. One of the best ways for a business to save on taxes is to show losses
14. Income tax officials also misuse the powers that they have to force businesses to pay bribes
15. There is a lack of surprise checks for large businesses by IT officials
16. Monthly payments are made to the IT inspectors by businesses to keep the collusion under wrap
17. Cases of such corruption haven’t been strictly dealt with, by the judiciary
18. Business income tax rules are complex and not easily understandable
19. High rate of taxes is also another reason for corruption. more
We look forward to your inputs and will soon take this matter up with industry bodies and Finance Ministry so actions can be taken on this issue.
Business Tax Corruption - Issues and Root Causes
1. Huge sum of money goes as fixed bribe from large export houses to customs department through intermediaries
2. To close the Income Tax and VAT assessments the higher ups takes bribes worth lakhs of rupees
3. Businesses bribe IT officers to overlook their tax frauds
4. CAs advice businesses of ways to save on taxes illegally
5. Typically, a business entity decides how much income tax it would pay. Accordingly, the books of accounts are adjusted by booking purchases, expenses etc. very often through sham transactions
6. Businesses collude with their partners to show losses and save on taxes
7. Businesses get a part of their pending taxes waived off by paying bribes
8. They also get penalties cancelled by bribing the officials
9. Officials sometimes simply send notices to many organizations for hassle value and creating more opportunities to earn bribes
10. CAs have always been dealing with IT officers a certain way and hence tend to flout rules assuming things cannot be done by following the process
11. Businessmen, Chartered Accountant & Officials of different departments join hands to exploit the loopholes in the rules
12. IT officers accept bribes to make easy money on the side
13. One of the best ways for a business to save on taxes is to show losses
14. Income tax officials also misuse the powers that they have to force businesses to pay bribes
15. There is a lack of surprise checks for large businesses by IT officials
16. Monthly payments are made to the IT inspectors by businesses to keep the collusion under wrap
17. Cases of such corruption haven’t been strictly dealt with, by the judiciary
18. Business income tax rules are complex and not easily understandable
19. High rate of taxes is also another reason for corruption. more
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There is a investigation team of Income Tax. They should be asked for not able to arrest the corruption in business tax corruption. more
Nov 30
It is really a very sad state of affair in our govt dept.They have all rights to do wrong unto the common man & if somebody wants to challenge the wrong, the govt has his own set of lawyers & judge who inadvertently do not give judgement & finally the common man has to give up.The business tax corruption has come up due to this particular problem where a common man does not want to go into the jungle of law & waste his precious time.Hence he has set his own principles where bribing govt officials is part of his daily business routine.So his business can run smoothly.The govt officials are very smart enough.They will ensure their money as well as govt tax.So the business person has to compensate this by doing some irregular billing in order to pay this bribe. more
Oct 22
In a leading hospital in Chennai I had seen a doctor visiting in patients daily and charging Rs2000/- per visit (per day) all in cash. He visited nearly 20 patients in a day apart from earning at OPD . When I asked for receipt I was given a small note on plain paper . One can imagine the huge amount of Tax Evasion on this issue.Hospitals must be strictly instructed to include Doctor's fees in the regular bill and payment strictly by credit card / check /Debit card only.When a salaried person is taxed as per his payslip (because it is easily disclosed) how about these professionals .Why should there be different rules for different citizens..? more
Oct 20
Is there any point in documenting public opinion on this issue? Even the common man is aware about the high level of corruption in this country in every sphere of life. If the government personnel are not aware of this nexus between business men and tax officials, it is a very sad state of affair. They know it very well but do not admit since they themselves are a party to it. The modus operandi of bribing may not be known to the people at large, but everyone in this country would solemnly admit that for something or the other, they had to bribe to get something done. Is it not too late for the government to realise the spread and depth of this cancerous national disease? more
Oct 19
