Will Tax Corruption figure in discussions?
CORRUPTION is the hot topic in India now. The OECD brochure says,
Corruption is a significant obstacle to economic development as it undermines good governance, sustainable development and fair business practices. Corruption affects India's attractiveness as a destination for investment, and undermines economic growth, trade, and job creation. Moreover, the impact of corruption on the weaker members of Indian society is well documented in, for instance, health projects and the food distribution system. As Indian enterprises become increasingly multinational, there is also a need to ensure that they do not engage in bribery while operating in foreign jurisdictions.
Incidentally, India will be hosting the 2011 annual meeting of the ADB/OECD Anti-Corruption Initiative entitled 'Strengthening Institutions to Effectively Combat Corruption', in New Delhi in September 2011.
On Taxation: The OECD brochure says, “The Indian government plans to reform and simplify the country's presently complex tax system. These reforms aim to broaden the tax-paying base and increase tax revenues as the country confronts a widening budget deficit and implements plans to expand social welfare programmes.
The first high-level event on 13-14 June 2011, focuses on adapting tax systems and international tax rules to the new global environment, which includes transfer pricing. Furthermore, there is increasing recognition that taxation has implications that stretch beyond the narrow sphere of revenue-raising into good governance and ultimately in the accountability of the state to its citizen ”