Government’s efforts to deal with the menace of black money helped in checking tax evasion as alert revenue officials prevented illegal outflow of over Rs 66,000 crore by MNCs during the last fiscal.
“The Directorate of Transfer Pricing in the Ministry (of Finance) helped in saving Rs 66,085 crore during the last year by timely stopping the illegal transfer of money through transfer pricing,” Finance Minister Pranab Mukherjee said at a meeting of Central Direct Taxes Advisory Committee (CDTAC) in New Delhi on Tuesday.
Multinational companies use transfer pricing for products and services in cross-border trade between their related entities to shift profits to countries with low tax rates. In the process, countries lose tax revenue.
The Ministry, according to sources, is contemplating introducing Advance Pricing Agreement (APA) mechanism in the upcoming budget to check transfer pricing disputes.
The APA mechanism will allow companies to enter into agreements with the tax authorities to prevent future disputes with regard to pricing of products and services for the purpose of cross-border trade between related entities.
The Finance Minister had earlier assured Parliament that the government would come out with a White Paper on Black Money.
The government, Mr. Mukherjee said, has taken several steps to unearth black money and legislative measures to obtain banking information - through Double Taxation Avoidance Agreements (DTAA) and Tax Information Exchange Agreements (TIEA) - are being negotiated.
Keywords: Finance Minister, Revenue department, Illegal outflow, Blackmoney generation, Pranab Mukherjee
How long for multinational company havebeen illegal for rs.66000,crore per year for loss on government. this is including political party hasbeen undertaking an commission for every year thats the reason of the money goes for outflow. if you loss not only government there is loss on poor people ones rising an poor people no more government no more multinational company and no more business people or investors mind it. there should be not for end this is a beginning dont lose for any reason if you pay correctly tax on government.
This procedure by which Multinational Companies have been stashing
money abroad is known to every one over the decades.
The revelation by the F.M is short of one crucial point expose the
loss of credibility.
IF the department has been able to PREVENT this colossal "Loss"
What action have they taken to bring those involved to justice and face charges
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