Tax is like a fictional character ‘Robin Hood’ which takes money from the riches to serve the public purpose. However the purpose of this inanimate Robin Hood fails when the mask of corporate personality is used to evade and avoid taxes with an angle of international transaction. In a developing country like India, the research scholars are really concerned on the issue of low tax base and tax revenue. On the top of it international transactions and use of tax havens by the private players in the mask of corporate entity takes away the share of Indian revenue and hence hampers development. It is always hoped in such situations that new legislations like Direct Tax Code [hereinafter referred as DTC] will change this history and generate good tax revenue for development. On contrary to it and in search for good tax revenue, the DTC is coming up with a bonanza but matter of concern is that its provision with regard to the instant issue is against the fiscal jurisprudence. The DTC draft is adding salt to this injury by using ambiguous terms. The suggested DTC provisions are not a first time experiment across the globe. The Authors in the course of this paper have discovered the failing aspect of such provisions across the globe. This seriously calls for trouble for a newly budding Indian Economy. Conclusively and in precise, the paper tries to find out whether the ambiguous DTC being against fiscal jurisprudence; fundamental difference of tax evasion and tax avoidance; concept of residence for taxation and international failure of similar provisions will hold some relevance for India.
- Comparative taxation,
- Direct Tax Code,
- Indian Taxation
Available at: http://works.bepress.com/sagnik_chatterjee/1/