Amnesty to tax evaders worries Transparency International

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Amnesty to tax evaders worries Transparency International with the government considering a plan to offer an amnesty scheme for voluntary disclosure of undisclosed bank accounts and assets held abroad, corruption watchdog Transparency International (TI) has expressed concerns about the amnesty to tax evaders. “Implicit in the proposal is acceptance that business corporate houses and individual businessmen have maintained secret bank accounts in foreign countries both by evading taxes and concealing the source of money, which could involve criminal and terrorist activities,” said P. S. Bawa, chair of Transparency International India. The watchdog said the earlier amnesty schemes were premised on the ground that business houses and individuals would learn a lesson, declare income, and pay taxes in future. But, it added, that this has apparently not happened and the hopes of the government have been belied. TI also believed that the present move confirmed the inappropriateness of such schemes that pardoned not only illegal activities and concealment of sources of income, but also evasion of taxes, all of which are punishable under the common and taxation laws. The body said the scheme encouraged tax evaders to continue such practice in the future. “Condoning such opaque activities that are against all norms of transparency, projects the image of the India as a reluctant, soft, and pliable State,” said the press release. TI reiterated that this would be a violation of the basic tenets of the Constitution that provides for rule of law and not executive orders that appear to be arbitrary and in violation of the fundamental right of equality before law.