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Tech ready to track tax truants

Calcutta, Nov. 26: The government has the capability to track all financial transactions carried out by an identified tax evader, finance minister P. Chidambaram warned.

Chidambaram today said the government now had the technological resources at its disposal to construct a “360-degree profile” of financial transactions of tax evaders.

“It is possible that some people may still think that they can get away without paying service tax. I want to caution them that you may have been right 10 or 15 years ago when technology was not available to the government. Today we have the technological resources,” Chidambaram said here today.

“And if you are identified as a tax evader under any kind of tax — VAT, service tax, income tax, customs…if you come under the scrutiny of the revenue department, we have the technology to construct a 360-degree profile of all your financial transactions,” he said at the awareness camp on the Voluntary Compliance Encouragement Scheme (VCES).

The VCES gives defaulters an opportunity to pay “tax dues” from October 1, 2007 to December 31, 2012 without interest, penalty and other legal proceedings including prosecution. The scheme is closing on December 31.

“This is your best chance to come clean. This is the chance to make a clean start to your business,” he said.

The minister further warned that the government would use the provisions of arrests and prosecutions under various legal instruments such as income tax act, prevention of money laundering act, foreign exchange management act, sales tax laws and excise laws against chronic service tax evaders.

“In fact we already have such profiles (of tax evaders). In order to show that we are serious about that effort, we will also use the provisions of arrests and prosecutions in the case of chronic service tax evaders,” he added.

 
 
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