Less Discretion Needed

Transfer-pricing proposal will lead to litigation

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A parliamentary select committee has submitted a report on the new Income Tax Bill, which is meant to replace the current law, in force since 1961. It has suggested multiple changes to the draft Bill, including those pertaining to the assessment of income from real estate. The committee has praised the clarity of the new Bill, which has 536 sections in 23 chapters, while identifying some areas where greater clarity in definitions might be required.

It is surprising, however, that the legislators have not in general pushed back against excessive discretion being granted to the income-tax authorities. For example, it is concerning that the committee report clearly backs the controversial additions to tax officials' powers, which allow them to forcibly access social-media accounts, online apps, and personal emails.