 "hasmukh adhia Revenue secretary")
Foreign multinationals like Vodafone and Cairn are welcome to come forward and avail the one-time settlement proposal announced in the Budget, as the government attempts to clear past cases, Revenue Secretary Hasmukh Adhia said in an interview. Tightening noose on domestic black money, Adhia told Dilasha Seth, Arup Roychoudhury and Indivjal Dhasmana that compliance window will be a great opportunity for unaccounted money holders to come clean as intensive raids and searches saw Rs 20,000 crore black money being disclosed by individuals in the last two years. Edited excerpts:
In line with the one-time settlement proposal for retrospective taxation cases announced in the Budget, does the government plan to hold discussions with Vodafone and Cairn?
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We do not have to approach anyone. It is a scheme for everyone who is hit by retrospective taxation and would like to avail the benefit. They are most welcome to come forward. There is no question of any discussions with the firms as law of the land is there. Once the amendment is cleared in the finance Bill, the option will be available to companies.
You will be heading a high level committee, created to review fresh liability using retrospective tax legislation. The earlier version of the panel was headed by a joint secretary. What is the broad objective?
But there are no new cases. Of the 12 old cases, some are repetitive, so there are nine to 10 ongoing cases. The committee got two to three cases, but it did not agree to any of them. But now even if there is a new case, we are saying that we will take due care to address those and allay such fears.
The compliance window for domestic black money has been proposed. Do you expect people to come out and pay 45 per cent tax and declare unaccounted money, considering, the response to the similar scheme last year for black money stashed overseas was muted?
We have no expectations from the window as this is not a revenue mobilisation effort for us. The government is trying to put a lot of effort in trying to unearth black money, which we have done very effectively. Over the last two years, Rs 20,000 crore money has been admitted as undisclosed by people in various raids and searches procedures. Foreign black money cases are going on. We are continuously getting information.
The direct tax collections fell short of target this year. Do you think an 18 per cent growth in personal income tax is possible next financial year?
It is not ambitious but an average buoyancy rate of last few years. So we know by experience. At the same time we are also trying to widen the tax net, putting in place PAN card requirement besides the improved digital capability to track transactions.
