Shome to head think-tank on global tax research
BENGALURU, AUGUST 17: To conduct research on present tax regulations, address uncertainties arising out of interpretation and ensure higher FDI, the International Tax Research and Analysis Foundation (ITRAF) was launched here on Monday.
Headed by Parthasarathi Shome, an economist and former head of the panel on General Anti Avoidance Rules (GAAR), the think-tank aims to conduct research on the changing landscape of the Indian economy as a result of globalisation and technology advances. This ITRAF is modelled along the lines of the Brookings Institution.
The country lacks a mechanism wherein tax-related laws with ambiguities — such as retrospective taxes — can be debated and discussed before they are enforced, Shome told BusinessLine here.
Regulatory bodies globally are struggling with issues like Base Erosion and Profit Sharing (BEPS). ITRAF will discuss issues such as — in a globalised world, where does tax arise? Shome will be assisted by TV Mohandas Pai and Suresh Senapaty, former CFOs of Infosys and Wipro respectively, amongst others.
The think-tank will discuss ways in which India can be made an attractive investment destination. “The objective is not to find faults in the system but how it can be used to help ease of business and establish trust amongst investors,” said Senapaty. Pai added that it will be an apolitical think-tank, free from corporate and sectoral bias. Shome believes that India needs to have a strong research backbone when it comes to international tax regulations, benchmark them with the global best standards, and make appropriate recommendations.
ITRAF has already seen participation from global companies such as BMR Legal, Deloitte Haskind & Sells, Leap Ridge Advisors and PwC.
