Tax Administration Reform Commission Set up - Of Former Babus
IN his Budget Speech 2013-14 in the Parliament on 28.02.2013, the Finance Minister had announced:
"An emerging economy must have a tax system that reflects best global practices. I propose to set-up a Tax Administration Reform Commission to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of our tax system."
The Government has now set up the Tax Administration Reform Commission (TARC) headed by Dr. Parthasarathy Shome in the rank of Minister of State.
The Members of the Commission are:
Full- Time Members: 2
1. Mr.Y.G. Parande
2. Ms.Sunita Kaila
Part-time Members: 4
1. Mr.M.K. Zutshi
2. Mr. S.S. N. Moorthy
3. Mr.M.R. Diwakar
4. Mr. S. Mahalingam
Two are former Members of the CBDT and CBEC, two are former Chairmen and two are from the trade. They are to review the existing mechanism/policy and to recommend measures for:
1. appropriate organizational structure for tax governance with special reference to deployment of workforce commensurate with functional requirements, capacity building, vigilance administration, responsibility and accountability of human resources, key performance indicators, assessment, grading and promotion systems, and structures to promote quality decision making at the highest policy levels.
2. tax governance best suited to Indian context.
3. dispute resolution covering time and compliance cost
4. capacity building
5. deepening and widening of tax base and taxpayer base.
6. better tax compliance - by size, segment and nature of taxes and taxpayers
7. improved taxpayer services and taxpayers education programme.
8. strengthening of Database and Inter-agency information sharing, not only between Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs(CBEC) but also with the banking and financial sector, Central Economic Intelligence Bureau (CEIB), Financial Intelligence Unit (FIU), Enforcement Directorate etc.
9. research inputs to tax governance.
10. to enhance predictive analysis to detect and prevent tax/economic offences.
The life of the Commission is 18 months - the present Government does not have that much time left. It is doubtful whether the new Government would want recommendations from this Commission - maybe they hope to come back to power. Four out of the six members of the commission are retired Revenue officers and are we expecting to learn from the wisdom acquired by them after retirement?