To check the menace of international cross border tax evasion, the Union Ministry of Finance has approved eight income tax units within the Indian missions overseas, Finance minister Pranab Mukherjee said.The Union Finance Ministry has already set up two income tax overseas units within the Indian missions in Singapore and Mauritius, and recently approved eight more such units to facilitate seamless flow of tax-related information from abroad.
“We have approved eight more such units in countries like USA, UK, Netherland, Japan, Cyprus, Germany, France and UAE,” Mukherjee said.Online GST Certification Course by TaxGuru & MSME- Click here to Join
Mukherjee said this while addressing a gathering at a function organised by the Gujarat Income Tax Department here for inauguration of Aaykar Vihar, residential quarters for IT officials.
“These overseas units will facilitate seamless flow of tax related information on their foreign tax jurisdiction and will strengthen our fight against the menace of tax evasion using cross border transactions,” Mukherjee said.
“To improve compliance of tax laws what I feel is that we shall have to make the tax laws simple, steady and robust. The tax rates should also remain moderate and multiplicity of tax exemptions and deductions should be gradually phased out in order to widen and deepen the tax net,” Mukherjee said.