Black money: Panel set up on voluntary compliance

Amid the growing clamour to crack down on generation of black money, the finance ministry has instituted a study group to improve “voluntary compliance” by suggesting appropriate measures to motivate tax evaders to disclose their unaccounted funds.

The study, which will be conducted by economic and tax experts, is also aimed at stopping “commoditisation of tax avoidance schemes”.

The latest study comes in the backdrop of Finance Minister Pranab Mukherjee’s statement that the two groups have been constituted to look into different aspects of the black money, including a proposed amnesty scheme to unearth unaccounted wealth.

According to the statement of the proposal put forward by the Income Tax Department, “Complexity and innovation in business structures, new financial products, a large number of taxpayers, growth in international trade supported by rapid expansion of e-commerce, commoditisation of tax avoidance schemes are some of the factors leading to increased compliance risk for the tax administration.”