PRESIDENT Pranab Mukherjee said Monday with India signing agreements with various countries post-global meltdown for sharing information on tax evasion,MNCs had been forced to reveal business transactions.
He was addressing the 65th convocation of Indian Revenue Services (IRS) probationers at National Academy of Direct Taxes.
Mukherjee said,The world economy is closely linked,you like it or not. If there is uncertainty in oil prices,it affects our economy. Drought in one part of the world affects others.
Three-fourth of MNC transactions have the objective of setting up units in countries with low taxes and depositing profits in tax havens. This was a problem area. Now,these companies are forced to share all information.
The president accepted that the direct tax collection had been below the Rs 6,68,000-crore target set by Finance Minister P Chidambaram this year.
Tax collection is neither simple nor popular, he said,adding,In democratic polity,you have to be sensitive to rights and privileges of the people. But there has to be resource mobilisation since many projects cannot be taken up otherwise.
Services have to be improved for better direct tax management. We have already simplified and mechanised tax returns filing. Modernisation of tax laws is crucial and is being done.
Quoting Mahatma Gandhi,Mukherjee told the Indian Revenue Services probationers: When in doubt while taking a decision,shut your eyes,try to remember faces of the weakest and think if your decision will hurt or heal him or her.