Kerala - Kochi   

Satyam fiasco is a warning bell to Indian firms: Minister

KOCHI: Transparency and accountability must become part and parcel of all facets of human activity, especially financial transactions, Union Minister for Overseas Indian Affairs, Vayalar Ravi, has said.

Speaking after inaugurating a regional seminar on tax laws, organised by the Southern India Regional Council of the Institute of Chartered Accountants of India (ICAI), Mr Ravi spoke of how the Satyam fiasco is a warning bell to Indian firms and chartered accountants, on matters like accountability and professional ethics. “But still, there are firms that manipulate the market for selfish motives.”

The Minister said that India has framed its tax policies to ensure equity among the masses. Successive Union Finance Ministers have been striving to simplify tax laws.

“The world over, taxation systems are struggling to keep pace with the forces of globalisation and market liberalisation.

“The changing nature of commerce is giving rise to new areas of debate. It is well known that tax treaties between countries are negotiated not strictly on the basis of taxation principles, but in the spirit of give-and-take. But very often, residents of third countries try to take advantage of the benefits by routing their transactions through the countries that are party to the treaty. Chartered accountants and other stakeholders have to take a fresh look at such emerging issues and assist tax payers.”

Delivering the keynote address, K Madhavan Nair, Director General of Income Tax (Investigation), Kerala and Karnataka, spoke of how the ancient barter system gave way to modern approaches to business transactions.

The chairman of the Southern India Regional Council of the ICAI, M. Devaraja Reddy, said in his presidential address about how recession did not affect India in the same way as it affected many of the developed countries, thanks be to a strong financial system in the country.

The body’s vice-chairman Babu Abraham Kallivayalil too spoke.

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