Govt set up Tax Administration Reform Commission (TARC)
Finance Minister in his Budget Speech 2013-14 in the Parliament on 28.02.2013, had announced as under:“An emerging economy must have a tax system that reflects best global practices. I propose to set-up a Tax Administration Reform Commission to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of our tax system.”
Accordingly, the government has set-up a Tax Administration Reform Commission (TARC). The term of the Commission will be 18 months. The Chairman of the commission is Dr. Parthasarathy Shome and will be in the rank of Minister of State.
It consists of two full-time members (Shri Y.G.Parande and Ms. Sunita Kaila) and four part-time Members (Shri M.K. Zutshi, Shri S.S.N. Moorthy, Shri M.R.Diwakar and Shri S. Mahalingam.
It functions to review the existing mechanism and recommend appropriate organizational structure for tax governance with special reference to deployment of workforce commensurate with functional requirements, capacity building, vigilance administration, responsibility and accountability of human resources, key performance indicators, assessment, grading and promotion systems, and structures to promote quality decision making at the highest policy levels.
To review the existing business processes of tax governance including the use of information and communication technology and recommend measures for tax governance best suited to Indian context
To review the existing mechanism of dispute resolution covering time and compliance cost and recommend measures for strengthening the same. This includes domestic and international taxation.
Further, it looks to review the existing mechanism and recommend measures for strengthening of Database and Inter-agency information sharing, not only between Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) but also with the banking and financial sector, Central Economic Intelligence Bureau (CEIB), Financial Intelligence Unit (FlU), Enforcement Directorate etc. and use of tools for utilization of such information to ensure compliance.