"Tax terrorism"

The 2012 proposal of retrospective tax collection pertaining to Vodafone issue where  this was also termed as the breach of the agreement between indo -Netherlands investment treaty similarly the case of cairn energy also is now mentioned rather labeled as INDO -UK breach of the investment treaty, were again the apex court verdict goes awarding company with $1.2 billion.

BJP then took a stand and stated that this is nothing but a tax terrorism by amending and allowing the retrospective tax.

Incumbent is now dealing with the case and is in mood to appeal in the permanent court of arbitration or PCA not only in Vodafone case but also in case of cairn energy case but this probably may further tarnish the image and will certainly be inferred as the damage or stealing the investment interest.

Will this not be proper for the government to concede over it honestly and change the decision of heading towards appellate authority for which the seat of haug and Singapore of PAC appears under suspicion and thinks that the case is not of tax issue rather its read as the tax investment dispute that is one in tune with the investment agreements thereto?

The damages otherwise imposed and occurred could be repaired even now thus the change of attitude and decision of appealing might be procrastinated rather cancelled keeping in view the long term investment images. 

A step back perhaps thoughtfully might save the face for the cases observed on international level as a mistaken decision at our part which could be managed even now amicably as this is reported, understood circumstantially and seems to be.

- Sunil S Okhade  

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