Acting against tax evasion is not tax terrorism: CBDT chief

Promising to move "two steps" forward to clear the perception of 'tax terrorism', the Tax Department today said the taxpayers also need to take 'two steps' to ensure their compliance with laws.
The comments, made by CBDT (Central Board of Direct Taxes) Chairperson Anita Kapur, assume significance in the wake of concerns raised in some quarters that government and tax authorities were indulging in 'tax terrorism' with strict actions against suspected tax evaders.
Speaking at an event organized by an industry chamber, Kapur said that her department expects the tax payers to be honest in filing taxes.
"My officers tell me that what was seen as tax evasion is now being perceived as tax terrorism. There is a kind of disconnect between what tax administrators see when they scrutinise cases, and what taxpayer sees when he is subjected to audit and tax scrutiny," she said.

"The gap between tax evasion and tax terrorism can only be bridged (if) either we have such simple laws that tax evasion disappears, or tax payers start complying with the intent of the law rather than creating ingenious interpretation totally contrary to the intent of the law," she said.
She said the Tax Department "will move two steps to ensure that what we target is actually a tax evasion".
"And we (the tax department) expect you (tax payers) to move two steps to see that you are tax-compliant," she added.