56% CAs admit presence of corporate tax evasion

In a first-of-its kind survey conducted among 95 chartered accountants across the state, 56% admitted to the existence of the malpractice of corporate tax evasion. The assessors cited multiple overlapping taxes, lack of prudent government spending and delays in getting tax refunds as the main reasons why their clients avoid paying taxes.

"Fifty-six per cent of respondents are of the opinion that tax evasion exists in the corporate sector in Goa, although it may be difficult to measure the magnitude to which it exists," states the study titled 'Evading tax - avoiding growth: Some evidences from Goa' conducted by associate professor at Pilar's Father Agnel College, Reji George, and professor at department of commerce at Goa University, Y V Reddy.

"Results show that majority of the respondents (67%) have identified existence of multiple taxes as the main reason, 56.7% cited lack of prudent spending by government, 50% said inefficiency in tax department/administration, 55% stated long time for refund as the reasons for corporate tax payers evading taxes," the study conducted between December 2014 to February 2015 stated.

The report, based on responses from registered tax professionals practising in Margao, Mapusa, Panaji, Ponda and Vasco, adds that the opinion of tax professionals is important for two reasons. "Firstly, a tax professional has full knowledge of the income tax system, and secondly, since they deal with taxpayers they are aware of the compliance behaviour of the corporate assessees in Goa."

The research work recommends that to avoid defaulting behaviour among corporate tax payers, the tax administration should make efforts to speed up the system of income tax refunds and keep a count of estimated levels of uncollected corporate taxes in Goa. #casansaar (Times of India)