INDIA Trends and Developments Contributed by: Mukesh Butani, Seema Kejriwal, Pranoy Goswami and Mansi Mathur, BMR Legal
on Economic, Social & Cultural Rights released a statement wherein they stated that aligning tax co-operation with the obligations under the Covenant on Economic, Social & Cultural Rights can contribute to the effective mobilisa - tion of resources and redistribution of wealth. It also stated that adopting a binding framework convention on international tax co-operation, grounded in a human-rights based approach, presents state parties with a unique opportunity to also fulfil their commitments under the Cov - enant as well as create an enabling environment at both domestic and international levels. Conclusion India shall continue to protect its tax base by keeping a hawk-eye watch on transfer pricing practices of multinationals. As business arrange - ments are evolving and transfiguring, so is the law on taxation. Points of law resolved in favour of taxpayers by the judiciary are tackled by way of introducing largely prospective amendments to the law.
There is a notable trend to adapt to global best practices, and with every amendment and judi - cial opinion there is a resolution to align with internationally benchmarked assessment. How - ever, the implementation of a robust dispute resolution mechanism is the need of the hour; while the MAP and APA statistics are promising, there is a sufficient gap for advancement. Fur - ther, there is a dire necessity for taxpayer rights to take centre stage. APA and MAP are effective devices for tax certainty and preventing tedious litigation, yet authorities are unable to employ them to the fullest extent.
197 CHAMBERS.COM
Powered by FlippingBook