: Tax Administration Reform Commission Set Up

The Ministry of Finance has issued a press release dated 13.08.2013 stating
that the Union Cabinet has approved the proposal for setting up of the Tax
Administration Reform Commission (TARC).

The Commission will consist of a Chairman, two full time members and four
part-time members, of which at least two part-time members will be from the
private sector. The Chairman will be an eminent person having wide
experience of tax administration and policy making. Full-time members of
the Commission will be one member each with a background in revenue service
pertaining to Income Tax and Central Excise and Customs respectively. The
term of the Commission will be 18 months.

The Commission will review the application of tax policies and tax laws in
India in the context of global best practices and recommend measures to
strengthen the capacity of the tax system in India that would reflect best
global practices. The Commission will help in removing ambiguity in
application of tax policy and tax laws, thereby establishing a stable tax
regime and a non-adversarial tax administration. The Commission will
facilitate an efficient tax administrative system that would enhance the
tax base as well as tax payer base.

The context for the setting up of the 'Tax Administration Reform
Commission' is the statement by the Finance Minister in his Budget Speech
for 2013-14 where he had said "*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*."

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