Corruption in Income Taxes - Root Causes

Below are the key issues as outlined by you in regards to Corruption in Income Tax. Kindly review and help identify specific root causes for the same. We look forward to your inputs. Once this exercise is complete, we will be sharing our findings with key stakeholders in Government.

We look forward to your inputs!
Transparency International India

Corruption in Income Taxes - Key Issues

1. Businesses pay bribes to get their income tax liability reduced
2. Income tax officers take bribes to not report offenders
3. After the investigation is over, a deal takes place. Only 20% is shown as penalty, 20% bribe and 60% remains with the client
4. The IT department intentionally sends notices at the wrong address and then levy penalty for not replying
5. Many cases of scrutiny, businessman cases, money laundering cases are decided on percentage bases by IT officials
6. Sometimes unsigned tax refund cheques are sent forcing people to go to the authorities where bribes are demanded to rectify the mistake
7. During IT raids, the officers take a lot of files with them and then ask for bribes to return them
8. Officials ask for bribes to let go of penalties
9. Start ups and SMEs receive notices which are more for harrassment and bribery purposes rather than real issues
10. SMEs, start ups, small businesses due to harrassment hire Chartered Accountants who in many cases promote bribery as they have been part of a broken system for a long time. more  

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INDIA is the most CORRUPT COUNTRY IN THE WORLD. Eradication is a slow process here. For that WE HAVE to not only publically START EXECUTING BRIBE GIVER & BRIBE TAKER but also include in the list all those CAs and Tax Consultants who are very generously contributing in tax CHORI. OR, make the taxation in the country so simple with low rates that people will be voluntarily paying their taxes with no questions asked. If nothing is possible, then all other talks are made by insane and idiots. more  
There need to be a cap on how much %age tax + cess + any other tax the govt charge people. more  
It is well set links of the Officials and the CA touts with whom only the cases get settled. It is open secrete. Furthermore the officials who had Caught red handed including the level of Commissioner shows the depth of the deterioration of the Dept. even though there is VERY TIGHT Security and secrecy. Needless to state instead of the Police Dept which is far behind, IT & RTO are more corrupt Depts in Country. more  
The treatment of income tax should be same as salaried class. No extra provisions should be provided for businessman. more  
Try & compare the scenario of extorting money ( one may term this as corruption also !) with pre-independent era. These officers enjoy powers under the statute like IRS, IAS etc. This ACTS like IRS, IAS, etc were drafted in British time to RULE the people & DRAG all the rich resources of India. These were designed to RULE people. Unlimited powers were given to Officers so that they can suppress the people. Under those rules the British govt officers were never at fault. Those officers looted the country because they were supposed to do this. IRS & IAS ACTS dates back to more than 100 years. Same Rules & Acts are still continuing even with comas & full stops !! The next generation of officers ( India n) saw the benefits & continued the legacy even after independence. So, in effect, its nothing but misuse of powers which is programmed in the minds of IRS & IAS & other protected Govt officers, with the help of the same ACTS & RULES DESIGNED BY THE BRITISH. Its time courts direct the government to have a re-look at those ACTS and modify them as “rules to administer” from the existing “rules to rule” It would be futile to keep finding and punishing the corrupt unless "fresh inflow" of such corrupt lot is not stopped from entering the system from the starting point. How ? Redraft the IRS & IAS Acts, redraft the government servants rules, which currently gives unlimited powers to dictate and extort money with such powers, which allows them to harass those who do not obey or surrender to them. We all know by now, how the exams are conducted in some states. Then we must understand what "quality " of people are taking up the high positions in government posts. Redraft the rules in such a manner that only those with real intention to "serve" would join the government services and not with intention to "make money by extortion". more  
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