Vodafone tax evasion case study

Annexure 2 Honourable Chief Justice S. Here again, the English Court has gone on to support the dissenting decision of Lord Eveleigh in Floor v.

Tax Laws in India

Vodafone tax evasion case study fact, taxes are as complex as life. However the AO has an array of tools available to frustrate the tax payer despite appellate provisions. Extract from Late Mr.

Now, Company X sells its product to Company Y at an artificially low price, resulting in a low profit and a low tax for Company X based in Africa. In speeches, their prime ministerial candidate Narendra Modi promised to get this black money estimated to be Rs.

Apart from the operating companies, rest of the structure was and is sham. Hochstrasser [] 2 W. Ultimately the honest tax payer suffers. Remember, profits and costs are in the first and last mile not in the rails read this SaveOnSend article for more details.

India is also set to revamp its taxations norms with significant changes at the regulatory level. Hutch India was in the business of providing telecommunications service in India. Economists and financial analysts believe that a large percentage of black money being held in cash in India would now be brought into the mainstream economy through the banks, which would bolster economic growth over the long term.

It was the first to provide an online channel inthe first to experiment with mobile money inand has managed to maintain a resounding lead in digital cross-border transfers: As we have already submitted earlier, this transaction is liable to tax in India. What is the protection for an honest tax payer from a greedy tax officer?

Government argued in favour of continuing the DTA and against its own tax revenues. It needs to be ignored for all practical purposes. Enough cheap jokes back to topic: These harsh provisions become the tools in the hands of the assessing officer to beat the tax payer.

Postal e-Bulletin 2014 - #3

Similarly, centralized e-payment systems with almost no transaction costs — Faster Payments, AliPay, WeChat Pay, Venmo, Paypal, Square — are already being used by billions of people around the world. Newer blockchain technologies have the potential to revolutionize this process and optimize capital deployment.

India is a great country. Unless the real estate transaction process and tax structure is simplified, the report suggests this source of black money will be difficult to prevent. The criminals pay bribes to the tax authorities to hide their corrupt activities. Opaque and complicated regulations are other major disincentive that hinders compliance and pushes people towards underground economy and creation of black money.

A normal view would be that if one non-resident sells shares of a foreign company to another non-resident of India; and the transaction takes place outside India, there can be no tax on the same.

Vodafone is a misunderstood case

Western Union 10K It becomes apparent that most of their costs are related to payments for receiving and discharging funds from-to customers, customer acquisition, channel infrastructure, customer service, and risk-management-compliance, not in recording transactions or moving money internationally read this SaveOnSend article for more details.

This legislation is complicated and elaborated because of intricate prepositions it has to express, and the verity of circumstances and conditions in which it falls to be applied and the refined distinctions it embodies in order to attempt to cater expressly for them.

As a consequence turning most of the unaccountable money into accountable and taxable money. Creating effective credible deterrence[ edit ] Effective and credible deterrence is necessary in combination with reforms, transparency, simple processes, elimination of bureaucracy and discretionary regulations.

Department was instructed to be silent. India has improved its rankings in the WB 'Doing Business' Report on the number of regulatory changes taken in the existing year.

Offer was made to Hutchison Whampoa Ltd. In most jurisdictions there are additional withholding tax obligations if the recipient of the income is resident in a different jurisdiction, and in those circumstances withholding tax sometimes applies to royalties, rent or even the sale of real estate.

Similarly, Estate Duty Act was an impractical law. A legal fiction has a limited scope and it cannot be expanded by giving purposive interpretation, particularly if the result of such interpretation is to transform the concept of chargeability which is also there in Section 9 1 i of the Act.

The fee volatility got so bad that in OctoberBitspark, one of the more prominent B2B providers of Bitcoin money transfers, switch away to another blockchain. When the Government goes on adding strict, far reaching deeming provisions in the law, one day it becomes an Impractical law.

In response to demands from the Bharatiya Janata Party BJP opposition party for the release of the information, the government announced on 15 December that, while it would not publish the names, it would publish a white paper about the HSBC information.Latest breaking news, including politics, crime and celebrity.

Find stories, updates and expert opinion. Bitcoin/Blockchain money transfer can help the needy Articles about FinTech-Bitcoin-blockchain are often trying to invoke “unbanked” “poor” or “women” as the reason and special focus for money transfer startups.

Indian black money

Instead of simply acknowledging that these startups are primarily founded to make money and accumulate market power, we are. Updates in Case: The tax office had asked Vodafone to pay $ billion (Approx Rs. Crore). On 15th Nov – India’s top court (Supreme court) directed Vodafone (VOD.L) to deposit $ million within three weeks in relation to a $ billion tax dispute.

ii. Vodafone’s liability to deduct tax at source. Paragraph II In our submission, the income is taxable in India and Vodafone is liable to deduct tax at source. For failing in its duty to deduct the tax – despite advance warnings, Government is entitled to proceed against Vodafone.

Governments use withholding tax as a means to combat tax evasion, and sometimes impose additional withholding tax requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common. GST - Goods and Services Tax RSS Feeds; Govt waives off late fee on GST returns By CA S K Verma The GST return-1 form is a vital tool for the authorities in combating tax evasion as it gives details about the buyer.

Vodafone tax evasion case study
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