NEW DELHI: Anti-tax avoidance such as GAAR need to be utilised and not to increase revenue for Centre, stated Parthasarathi Shome who heads the government committees on taxation matters.
Shome said, “We saw GAAR as a very very special instrument for controlling tax avoidance. We have to protect our revenue but with these kind of anti-avoidance methods we cannot be expanding our revenues.”
The expert committee on General Anti Avoidance Rules (GAAR) has proposed deferring of the tax provision by three years till April 2016 along with the abolition of capital gains tax on transfer of securities.
The committee in its draft report has proposed that GAAR provisions beed not be invoked to review the genuineness. The panel has submitted final report to Finance Minister P Chidambaram after reviewing the stakeholders' opinion.