Stay firm on respecting double tax treaties, take practical steps to deal with black money: ASSOCHAM to Govt

ASSOCHAM said the government should stand steadfast on a sensible approach of respecting India's double taxation avoidance agreements (DTATs) with 88 odd countries and not get pushed into violating these treaties since such a recourse will only weaken the country's quest for unearthing and dealing with the menace for good.

Finance Minister Mr Arun Jaitley is absolutely correct in not choosing 'adventurism' in dealing with the critical but delicate issue of unaccounted money purported to be held in overseas accounts. The sensible approach is to respect the DTATs and use the same to our advantage, ASSOCHAM Secretary General Mr D S Rawat said in a statement.

He said, in a vibrant democracy, it is but natural for the political parties to trade charges and the issue of black money comes handy and acts as a ready political fodder. Without diluting the fight against unaccounted money, the government is right in choosing a very practical approach to tread the issue since it involves international conventions and treaties.

The ASSOCHAM Secretary General said as the issue is also sub judice, the government will surely be cooperating with the Supreme Court in reaching to bottom of the problem, but the same cannot be done in full public view.

He said the DTATs are very important for the Indian residents and corporates which can avoid paying taxes twice. Revealing the names of individuals allegedly holding unaccounted money can make to headlines and juicy television debates but will surely make India's battle against the menace weak. Besides, violation of DTATs will deal a severe blow to the country's credibility.

He also appealed to different political parties to see reason while exerting pressure on the government to disclose classified information about individuals or entities relating to their alleged illegal accounts abroad. The best course would be to bring in systemic changes so that the premium on black money is diminished and with the help of technology, transparency is taxation becomes order of the day.

If names are placed in public domain and those named finally do not get convicted, there would be immense damage to the reputation of the individuals or entities.

Impression should not be given as if there is a wild goose chase which can harm the entire jurisprudence.

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