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Wednesday 18 May 2011

Tax Department Vows Crackdown on Black Money

Speaking on Wednesday at a seminar on black money, Sudhir Chandra praised what is arguably India’s most-hated department: the one responsible for levying taxes.

Indranil Mukherjee/Agence France-Presse/Getty Images
Taxpayers and company executives frequently complain – though rarely to police – that tax officers ask for bribes.

But Mr. Chandra, the chairman of the Central Board of Direct Taxes, threw out numbers to back up his claims.

It is to Mr. Chandra that tax officers ultimately report. In India, this is a job category that enjoys an even worse reputation than it does in most other countries.

Taxpayers and company executives frequently complain – though rarely to police –  that tax officers ask for bribes to avoid fines, a closer examinations of their accounts or even just to get their tax refunds.

But Mr. Chandra, the department's chairman, said things have started to change since he came into office in January. Speaking at the National Seminar on Black Money in New Delhi, Mr. Chandra said he "turned around" his department. To do this, he said he first ingratiated himself to his officers by doing things like speeding up leave approvals.

In return, he asked them to up the ante on tax refunds. As a result, Mr. Chandra said that a staggering 1.04 trillion rupees ($23 billion) have been returned to taxpayers under his watch so far.

On the other side of the tax equation, Mr. Chandra claimed that between April and mid-May, the department has collected 280 mil [...]



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