New Delhi: Auditing experts want “robust” implementation of the G-20 resolve to check the menace of tax havens which robs the nations of legitimate tax revenues.
“This is a very important and significant stand, however the implementation should be in a robust manner...so that “we do not create pockets which are still available for parking such monies,” PricewaterhouseCoopers executive director Rahul Garg told PTI.
There should be global consensus on the ways to dealing with the problem of tax havens, he added.
Another senior executive working with a global auditing firm, who did not want to be named, opined that the resolve of the G-20 leaders to crack down on the tax havens would encourage “corporate discipline and transparency.”
The decision, however, will have an impact on the bottomlines of corporate who route their investments through tax havens for the reasons of tax arbitrage and ease of doing business. In many tax havens the cost of operating and closing a company is minimal and secrecy laws prevent them from disclosing sources of funds.
From the point of view of government, an official said, what is important is that corporate houses should pay taxes at legitimate rates, whether in home country or in the country of operations.